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Metal Stocks: Foreign brokerage house Jefferies said in its report that the stock of country’s leading steel company Tata Steel and aluminum company Hindalco can give excellent returns to investors. The brokerage house said in its report that the shares of these leading metal companies of the country have underperformed in comparison to global companies. In such a situation, they provide an opportunity to buy. Jefferies said that Tata Steel and Hindalco are its top picks in the metals sector.
Jefferies has advised investors to buy Tata Steel shares for a target of Rs 145, which is currently trading around Rs 108. That is, from its current level, Tata Steel has the ability to give more than 34 percent return to investors. According to the report, Hindalco’s stock can give 40 percent return from the current level. The company has advised to buy the stock for a target of Rs 570, which is currently trading at Rs 408.
According to Jefferies, the shares of both the companies have underperformed. Due to which investors have an opportunity to invest in both these companies. The company’s top pick is Tata Steel followed by Hindalco.
The brokerage house said in its note that there are signs of recovery in China’s economic data. Manufacturing PMI has reached an 11-year high. Property prices have stabilized. After falling 23 percent in the 2022 calendar year, China’s export steel price has seen a jump of 14 percent in 2023. It has been said in the report that there is every possibility of increasing the demand of steel in Asia.
It was also said in the report that in the second half of 2022, India was importing steel. Because the prices of domestic steel had become costlier than imports. After which the government had imposed an export tariff of 15 percent. But the prices have come down in the domestic market. The government has abolished export tax. The import of steel has decreased, which will benefit these companies.
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