Metal and mining stocks: Five ‘Buy’ signals from Jefferies; know why

Kolkata: Nifty metal index has been one of the stock market indices that s closely under watch this year. As on Dec 14, 2025, the Nifty Metal was at 10,553.15, up by 0.16% from the previous close of 10536.45. Over the past 52 weeks, it moved between a low of 7,690.20 and a high of 10,837.45, said Kotak Securities. It is no wonder that US-based stock brokerage major Jefferies mentioned the sector is turning favourable, even with recent price swings. Jefferies said that the Asian steel spreads are near 15-year lows. Jefferies also said it expects the 12% safeguard duty on steel to return in India and it could push domestic prices up.

While this has been the macro outlook on steel, Jefferies maintains its projection of robust operating profit growth for Tata Steel and JSW Steel. This growth in profits, it said, it visible for the coming three years. The US-based brokerage also says that Tata Steel appears more robust than JSW Steel. However, according to the opinion of Jefferies, the operating profit of both companies is expected to jump about 22–23% every year through FY28.

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Target price: Rs 200

Jefferies has assigned a Buy call on Tata Steel. It points to about 22% upside from the current levels. But here is the real bull case: the stock could rise by 38% if the stronger scenario plays out, mentions Jefferies. Jefferies experts have mentioned a clear preference for Tata Steel (over JSW Steel) on the basis of its relative significance going up in terms of output in the country. Tata Steel's business in India could grow at about 8% a year, and profits can be ramped up rapidly if steel prices recover, which the brokerage says is possible if the safeguard duty returns. Jefferies says the Indian operations are far more valuable than the European arm of the company.

Target price: Rs 1,300

Jefferies maintains the Buy rating on JSW Steel and the target price signals about 16% potential upside, which can swell to 30% if the bull case situation prevails. JSW Steel is currently expanding output capacity at its existing plants. The estimated output rise will be about 7% every year through FY28. Jefferies expects the safeguard duty to returns and help elevate domestic prices of steel and Asian spreads to improve. The stock could see greater upside if JSW earns more per tonne than currently projected, the New York-based brokerage has mentioned.

Target price: Rs 430

 38% if the stronger scenario plays out, mentions Jefferies. Jefferies experts have mentioned a clear preference for Tata Steel (over JSW Steel) on the basis of its relative significance going up in terms of output in the country. Tata Steel's business in India could grow at about 8% a year, and profits can be ramped up rapidly if steel prices recover, which the brokerage says is possible if the safeguard duty returns. Jefferies says the Indian operations are far more valuable than the European arm of the company.

Target price: Rs 925

The target price of Rs 925 for Jindal Stainless set by JS Steel indicates about 21% upside from the current levels. The key reason for bullishness on this stock is the expectation that stainless steel demand will be robust in construction, transportation and manufacturing. If the global spreads recover and stronger Indian prices follow, there will be an upward pressure form earnings.

Target price: Rs 1,050

Jefferies has set a target price for Shyam Metalics which indicates a significant 31% upside. Shyam Metalics will benefit from the tailwind to the entire sector, says Jefferies. A rebound in steel spreads is expected and as mentioned above the reimposition of safeguard duty will benefit firms such as Shyam Metallics, since their profits are dependent on pricing in the domestic markets.