Base metal miners likely to outshine steel companies in mixed Q3; JSPL, Hindalco emerge as top picks

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Subscribe to enjoy similar stories. Domestic metal and mining companies with strong volume track records, superior product mixes and near-term expansion plans are expected to hold fort against swings in global prices and geopolitical uncertainties in the remainder of FY25, experts said ahead of the December quarter earnings season (Q3FY25). Jindal Steel and Power Ltd (JSPL) and aluminium manufacturer Hindalco Industries Ltd have emerged as the top picks in the ferrous and non-ferrous metal categories, respectively.

JSPL has outperformed the broader metals pack over the past one year, returning almost 25%, while the Nifty Metal index returned 5% during the same period. Hindalco’s share price has dropped almost 26% from an all-time high of ₹772.65 in October 2024 due to falling aluminium prices and short-term demand pains. “From a long-term volume growth perspective, Hindalco has better structural drivers in place compared to Nalco (National Aluminium Co Ltd).

Moreover, Hindalco’s recent stock correction offers a good entry point into the stock as well," Tushar Chaudhari, lead analyst at PL Capital, told Mint. While global demand for base metals such as aluminium, zinc and copper remains robust relative to that of ferrous metals like steel, a pickup in domestic construction and infrastructure activities following the monsoon is likely to bode well for steel manufacturers in H2FY25. ICICI Securities expects improving domestic consumption growth in Q4 to support falling steel prices, provided imports remain low.