5 Top Metal StocksTo Buy For Upside Up To 40%: ICICI Securities

The brokerage firm is bullish on metal stocks given the strong undercurrents of inflation and hence expect supply side imbalances to continue in various commodities (steel, aluminium, zinc, nickel, etc.). The (double) impact of cost curve increase and export restrictions out of Russia is being felt in aluminium, zinc and steel. Impact of possible sanctions is expected in coal and nickel, and possible impact of export volumes out of Ukraine is felt in ferro alloys (FeMn, Fe SiMn), iron ore and steel. International thermal coal prices are over US$400/te; and sooner there will be a crunch in domestic supply.

5 Top Metal StocksTo Buy For Upside Up To 40%: ICICI Securities

Top Stocks given a 'Buy' by ICICI Securities

Stock	Current price	Target price	Upside
Tata Steel	1269.5	1700	34.00%
Hindalco	589.95	700	19.00%
APL Apollo	829.85	1100	32.50%
Jindal Stainless	187.75	252	34.00%
JSPL	442	618	40.00%

As per the brokerage if steel companies in India consolidate and are able to push volumes despite the volatility there will be value creation. Further there is a view that the export market left out by Russia can be tapped by India potentially and it can turn out to be highly lucrative. So, this export realisation may go beyond 2-3 quarters.

In respect of Hindalco, the company said the impact as well as the duration of the crisis may result in some more cost bump. Aluminium prices may see a correction now amid softening power prices as well as softening demand due to higher aluminium prices.

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