Dividend Stocks: 3 Metals Stocks To Buy As Domestic Consumption Set To Grow 2x: ICICI Securities

ICICI Securities recommended 3 metals sector stocks showing potential to rally. The top picks of the brokerage are Jindal Stainless, Jindal Steel & Power and JSW Steel. According to the analyst, the Indian steel companies appear to be in a sweet spot amid robust domestic consumption growth and declining China influence in world order.

The domestic steel sector is entering a period of capacity expansion sans debt growth, and becoming more localised with lower leverage and better returns, which calls for valuation rerating. The brokerage house expects domestic steel consumption to grow 2x to 210 mt (FY23 baseline) by FY32E. More details below:

1. Buy Jindal Stainless Share: Current market price of Jindal Stainless Ltd share on BSE is Rs 703.60 per share with intraday fall of 0.42% as on May 18. ICICI Securities recommended buy call with target price of Rs 955 per share. The company has a market capitalisation of Rs 57,936.86 crore. The 52-week high price of Jindal Stainless share on BSE is Rs 747.90 per share (as on 24/04/2024) and 52-week low price is Rs 276.50 per share (as on 31/05/2023). Jindal Stainless share soared over 2% in last 1-week, fell 3.94% in last 2-weeks, soared 39% in last 6-months, soared 138% in last 1-year, and surged 375% in last 1-year.

The company as per its BSE filing dated May 15, "recommendation of payment of final dividend of Rs. 2 (Rupee Two only) per equity share of the face value of Rs. 2 each for the financial year ended 31st March, 2024, subject to the approval of the shareholders at the ensuing 44th Annual General Meeting."

2. Buy Jindal Steel & Power Share: Current market price of Jindal Steel & Power share on BSE is Rs 1016.25 per share. The brokerage has assigned buy call with target price of Rs 1240 per share. The 52-week high price of JSPL share on BSE is Rs 1027.95 per share (as on 17/05/2024) and 52-week low price is Rs 503.00 per share (as on 25/05/2023). The company has a market capitalisation of Rs 1,03,666.45 crore. Jindal Steel & Power shares zoomed 9% in last 1-week, gained 32% in last 3-months, soared 37% year-to-date, offered return of 94% in last 1-year, and surged 110% in last 2-years. JSPL shares surged 549% in last 5-years.

As per May 13 BSE filing of the company, "considered and recommended final Dividend for the financial year 2023-24@ 200%, i.e., Rs. 2/- per equity share of face value Re. 1/- each, out of the profits of the Company for the financial Year 2023-24, which shall be paid, subject to the approval of the shareholders in the ensuing Annual General Meeting and other authorities, wherever required."

3. Buy JSW Steel Share: Current market price of JSW Steel share on BSE is Rs 891.00 per share. ICICI Securities assigned buy call with target price of Rs 1140 per share. The 52-week high price of JSW Steel share on BSE is Rs 914.85 per share (as on 17/05/2024) and 52-week low price is Rs 681.30 per share (as on 19/05/2023). The company has a market capitalisation of Rs 2,17,889.95 crore. JSW Steel shares zoomed over 4% in last 1-week, gained more than 15% in last 6-months, soared 29% in last 1-year, and offered return of 41% in last 2-years. In last 5-years, JSW Steel stock soared 222%.

As per the BSE filing on May 17, the Company through its wholly owned subsidiary JSW Natural Resources Ltd has executed Quotas Sale Agreement, Assignment of Contractual Position Agreement to acquire 92.19% equity stake and shareholders loans of Minas de Revuboe Limitada.

The board of directors on May 17 recommended a final dividend of Rs 7.30 (730%) per fully paid-up equity share of Re 1 each for the year ended March 31, 2024.

Disclaimer: The stocks have been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.