Vedanta, Hind Zinc, SAIL, Tata Steel, JSW Steel: fresh price targets for metal stocks
Indian metals and mining companies posted a broad-based improvement in 4QFY26, driven by stronger realisations, volume growth and operating efficiencies, according to Systematix Institutional Equities.
- Jun 5, 2026,
- Updated Jun 5, 2026 11:43 AM IST
Indian metals and mining companies posted a broad-based improvement in 4QFY26, driven by stronger realisations, volume growth and operating efficiencies, according to Systematix Institutional Equities. Systematix said primary steel, mining, pipes and tubes, and non-ferrous companies all showed better earnings trends, though performance remained uneven across names.
Systematix said improving steel spreads, favourable commodity prices, ongoing capacity additions and infrastructure-led demand were the main earnings drivers in the quarter. It added that realisation trends, raw material costs, export recovery and project execution will shape the sector’s medium-term trajectory.
Among primary steel producers, Tata Steel gained from higher standalone profitability and narrowing UK losses. JSW Steel reported higher realisations, capacity ramp-up and an expanded roadmap towards 62 mt capacity by FY32. SAIL outperformed on inventory liquidation, operational efficiencies and higher dispatches, leading to a sharp margin recovery.
In mining, NMDC was the strongest performer with 21 per cent year-on-year volume growth and higher iron ore prices. Coal India benefited from better realisations and profitability despite lower e-auction premiums and dispatches, while MOIL remained under pressure from weaker manganese realisations and higher employee costs.
In steel pipes and tubes, APL Apollo Tubes sustained EBITDA per tonne above Rs 5,500 despite macro headwinds, Systematix said. Welspun Corp remained positioned to benefit from multiyear opportunities in US LNG, gas pipelines and Saudi infrastructure projects, despite temporary inventory-led margin pressure.
Jindal Saw faced export disruptions, underutilisation, logistics issues and API licence suspension, though Systematix expects recovery through improving utilisation and API certification renewal. Non-ferrous companies led earnings growth, with Vedanta and Hindustan Zinc benefiting from higher commodity prices, production growth, lower costs and expansion projects.
Hindalco’s India operations stayed resilient despite weaker Novelis performance, while NALCO faced pressure from lower alumina realisations and rising input costs. Systematix’s top picks in the sector are NMDC (Target Price: Rs 112), Welspun Corp (Target Price: Rs 1,610), Jindal Saw (Target Price: Rs 298), JSW Steel (Target Price: Rs 1,520) and APL Apollo Tubes (Target Price: Rs 2,265). All they have a 'buy' rating on them.
It also has a 'buy' rating on Hindustan Zinc (Target Price: Rs 724) and Vedanta (Target Price: Rs 944). However, this target price is for consolidated Vedanta, prior to demerger. It has a 'hold' rating on Tata Steet (Target Price: Rs 201), SAIL (Target Price: Rs 215), Hindalco (Target Price: Rs 1,111), Nalco (Target Price: Rs 442), while it has a 'sell' tag on Coal India (Target Price: Rs 417).
Indian metals and mining companies posted a broad-based improvement in 4QFY26, driven by stronger realisations, volume growth and operating efficiencies, according to Systematix Institutional Equities. Systematix said primary steel, mining, pipes and tubes, and non-ferrous companies all showed better earnings trends, though performance remained uneven across names.
Systematix said improving steel spreads, favourable commodity prices, ongoing capacity additions and infrastructure-led demand were the main earnings drivers in the quarter. It added that realisation trends, raw material costs, export recovery and project execution will shape the sector’s medium-term trajectory.
Among primary steel producers, Tata Steel gained from higher standalone profitability and narrowing UK losses. JSW Steel reported higher realisations, capacity ramp-up and an expanded roadmap towards 62 mt capacity by FY32. SAIL outperformed on inventory liquidation, operational efficiencies and higher dispatches, leading to a sharp margin recovery.
In mining, NMDC was the strongest performer with 21 per cent year-on-year volume growth and higher iron ore prices. Coal India benefited from better realisations and profitability despite lower e-auction premiums and dispatches, while MOIL remained under pressure from weaker manganese realisations and higher employee costs.
In steel pipes and tubes, APL Apollo Tubes sustained EBITDA per tonne above Rs 5,500 despite macro headwinds, Systematix said. Welspun Corp remained positioned to benefit from multiyear opportunities in US LNG, gas pipelines and Saudi infrastructure projects, despite temporary inventory-led margin pressure.
Jindal Saw faced export disruptions, underutilisation, logistics issues and API licence suspension, though Systematix expects recovery through improving utilisation and API certification renewal. Non-ferrous companies led earnings growth, with Vedanta and Hindustan Zinc benefiting from higher commodity prices, production growth, lower costs and expansion projects.
Hindalco’s India operations stayed resilient despite weaker Novelis performance, while NALCO faced pressure from lower alumina realisations and rising input costs. Systematix’s top picks in the sector are NMDC (Target Price: Rs 112), Welspun Corp (Target Price: Rs 1,610), Jindal Saw (Target Price: Rs 298), JSW Steel (Target Price: Rs 1,520) and APL Apollo Tubes (Target Price: Rs 2,265). All they have a 'buy' rating on them.
It also has a 'buy' rating on Hindustan Zinc (Target Price: Rs 724) and Vedanta (Target Price: Rs 944). However, this target price is for consolidated Vedanta, prior to demerger. It has a 'hold' rating on Tata Steet (Target Price: Rs 201), SAIL (Target Price: Rs 215), Hindalco (Target Price: Rs 1,111), Nalco (Target Price: Rs 442), while it has a 'sell' tag on Coal India (Target Price: Rs 417).