Metal Stocks To Buy: Analysts Are Betting BIG On Three Metal Stocks; Hindalco, Nalco And One More

Metal Stocks To Buy: Dodging geopolitical risks, including US tariff threat, metal and mining companies have showcased sequential recovery in margins during the March quarter of financial year 2024-25. While the sector reported mixed performance during the quarter, some companies outperformed with their robust earnings, noted Axis Securities underlining top metal stocks which are likely to deliver strong returns in long run.

Hindustan Aluminium Corporation Limited (Hindalco), National Aluminium Company Limited (NALCO), and APL Apollo Tubes are Axis Securities Top Metal Conviction Picks for long-term investment. The brokerage underscored resilient performance of the sector amidst lot of geopolitical uncertainties.

Metal Stocks To Buy: Investors Strategy For Top Metal Shares

As the metal and mining sector is likely to see growth in the long-run, investors can bet on reliable metal stocks thand maintain a strategy of 'Buy on dips', according to Axis Securities.

"This sector stands resilient amidst lot of geopolitical uncertainties and news, and we believe the sector could provide 'Buy on Dips' opportunities for investors," read a Top Conviction Pick report by Axis Securities.

Hindalco Share Price Target

Considering Hindalco's expansion plans including, investment in aluminium capacity boost, brownfield copper smelter expansion, are likely to be concluded as per the given timeline without significantly impacting its debt.

"Expansion projects will be completed by keeping the Net Debt/EBITDA

Hindalco shares were trading marginally higher at Rs 652.45 per share on BSE with a market capitalisation of Rs 146620.29 crore. Hindalco stock value has increased around 9.99% year to date (YTD) in one person. Axis Securities had maintained a 'Buy' rating for Hindalco stock with a target price of Rs 775 apiece.

Nalco Shares Target Price

With a 'Buy' rating for Nalco stock, Axis Securities had fixed a target price of Rs 220 per share for the metal stock. The Navratna Public Sector Undertaking (PSU) is likely to control its employee cost, which is likely to remain similar to FY25 levels, according to Axis Securities. Its focus on Bauxite mines expansion and capacity boost in the Alumina Refinery segment may increase its earning in the long-term.

"NALCO is currently undertaking brownfield expansion of its 5th stream of Alumina Refinery, increasing its capacity by 1 MT from the existing 2.1 MTPA to 3.1 MTPA. The timeline of the commercial production is Jun'26 (Q1FY27). The company has a target of 5-6 Lc tonnes of commercial alumina production in FY27," commented Axis Securities in its report.

Nalco shares were trading 0.4% higher at Rs 188 per share on BSE with a market capitalisation of Rs 34,528.68 crore. Nalco stock value has declined nearly 12.4% year to date (YTD).

APL Apollo Tubes Share Price Target

Axis Securities gave a 'Buy' rating for APL Apollo Tubes with a target price of Rs 2035 per share. The company may see an increase in its value added products (VAP) with a special focus on cost reduction, expansion of 'virgin domestic market and export markets'.

"We increase our FY26/27 EBITDA as we factor cost efficiency through lower employee costs and a higher share of VAP. We raise our TP to Rs 2,035/share from Rs 1,920/share earlier. The stock is now trading at a 12MF P/E multiple of 40x. We now value it at a 12MF target multiple of 35x on our FY27E EPS from 33x earlier," noted Axis Securitites.

APL Apollo Tubes shares were trading 1.92% lower at Rs 1884.25 per share on BSE at 1:20 pm. The company stock value has increased around 19% year to date (YTD).

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