Best Metal Stocks in India on 5Y CAGR Basis – June 2024

What are Metal Stocks?

Metals stocks are stocks of companies that are involved in the mining, processing, and distribution of metals such as iron, steel, gold, copper, aluminium, etc.

Metal Sector in India

India holds a competitive edge in steel and alumina production and conversion costs, bolstered by its strategic location, facilitating export opportunities to rapidly growing Asian markets. From April to January FY 2024, crude steel production reached 118.37 MT, with finished steel at 113.85 MT. Iron ore exports in 2022-23 were valued at US$ 1.75 billion, down from US$ 3.18 billion in 2021-22.

In FY23, aluminium production totaled 4.07 MT. By January 2024, the combined index of eight core industries stood at 156.0, driven by the coal, refinery products, fertilisers, steel, electricity, and cement sectors. From April 2000 to December 2023, FDI inflows in metallurgical industries totalled US$17.46 billion, with mining at US$3.50 billion, diamond and gold ornaments at US$1.27 billion, and coal production at US$27.73 million.

In this article, check the top metal stocks in India in June 2024, selected based on the 5-year CAGR.

Best Metal Stocks in India – 5yr CAGR Basis

Note: The list of best metal stocks is as of June 27, 2024. The stocks are selected from the Nifty 500 stock universe and sorted as per the 5yr CAGR.

Overview of the Best Metal Stocks in India

1. NLC India Ltd

NLC India is involved in the mining of lignite and generates power using lignite and renewable energy sources. The company reported a net profit margin of 12.34% and a return on equity (ROE) of 8.21%.

2. National Aluminium Co Ltd

National Aluminium Co Ltd is an India-based company that is focused on manufacturing and marketing aluminium and related chemicals. It also has captive thermal power plants close to its aluminium smelting plants. The company reported a net profit margin of 14.38% and a ROE of 11.17%.

3. Hindalco Industries Ltd

Hindalco Industries Ltd focuses largely on aluminium production and distribution through its various brands, such as Novelis Inc. (for international operations), Utkal Alumina International Ltd. (UAIL), Hindalco Almex Aluminium Ltd. (HAAL), Suvas Holdings Ltd., and Minerals and Minerals Ltd. It also has other branches that produce copper products (cathodes, rods, etc.), acids, gold, silver, etc. The company reported a net profit margin of 4.67% and an ROE of 11.67%.

4. Vedanta Ltd

Vedanta Ltd has a diversified portfolio of aluminium, copper, zinc, lead, silver, iron ore, oil, gas, and thermal power plants. The company reported a net profit margin of 2.82% and an ROE of 9.27%.

Final words

There are also other metal stocks in India. Before investing in any metal stock, make sure to review the company’s fundamentals. Then, make a decision based on your investment objective and risk appetite.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.