Macquarie has made significant revisions to its ratings and target prices for several key players in the metals sector, factoring in upside risks in commodity prices over the next 6-12 months. The brokerage expects steel companies to benefit from the domestic price premium over import parity, steady leverage, and easing input costs.
- JSW Steel: Macquarie has upgraded JSW Steel to an Outperform rating, raising the target price to ₹1,077 per share from the current market price (CPM) of ₹950.00.
- JSPL: JSPL remains Macquarie’s top sector pick, with the target price raised to ₹1,170 per share, up from the CPM of ₹1,014.05.
- Hindalco: An Outperform call has been reiterated on Hindalco, with the target price raised to ₹760 per share. Hindalco’s CPM is ₹687.30.
- Tata Steel: Macquarie continues its Outperform rating on Tata Steel, raising the target price to ₹171 per share, compared to the CPM of ₹150.08.
- Coal India: The target price for Coal India has also been raised to ₹541 per share, up from the CPM of ₹479.70.
Macquarie’s revised outlook reflects its belief that steel companies are well-positioned to benefit from favorable market conditions, including easing input costs and steady financial leverage in the near term.