India has a competitive edge in production and conversion costs for steel and alumina. India is the second-largest producer of crude steel globally. Additionally, India ranks as the second-largest producer of aluminium, the third-largest producer of lime, and the fourth-largest producer of iron ore in the world. In this article, let’s look at some of the best metal stocks in India for October 2024 based on the 5-yr CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Gujarat Mineral Development Corporation Ltd | 10,624.38 | 17.21 | 41.03 | -2.77 |
| National Aluminium Co Ltd | 40,470.18 | 20.35 | 36.72 | 127.34 |
| Hindalco Industries Ltd | 1,67,332.56 | 16.48 | 31.68 | 53.64 |
| Coal India Ltd | 3,06,410.85 | 8.19 | 21.68 | 70.9 |
| Hindustan Zinc Ltd | 2,18,554.63 | 28.17 | 19.98 | 63.82 |
Note: The best metal stocks list in October in India here are sorted as per the 5-yr CAGR as of October 09, 2024.
Gujarat Mineral Development Corporation (GMDC) focuses mainly on 2 areas: mining and power. Its projects involve lignite, bauxite, fluorspar, multi-metal, and manganese, as well as power generation through wind and solar energy. The company has set a capital expenditure target of ₹3,000 crore, primarily for its lignite projects. Over the next 4 to 5 years (by FY29-FY30), GMDC plans to add six new mines, which will bring its total lignite reserves to 360 million tonnes.
In the quarter ending June 2024, the company’s revenue increased to ₹818.13 crore from ₹750.75 crore in the previous quarter. Its net profit also decreased to ₹184.57 crore from ₹204.12 crore in the earlier quarter.
Key metrics:
Founded in 1981, National Aluminium Company Limited (NALCO) produces and sells alumina and aluminium. It is a Navaratna Central Public Sector Enterprise under the Ministry of Mines. NALCO is one of the largest integrated bauxite-alumina-aluminium-power complexes in India and one of the biggest primary aluminium producers in Asia.
For the quarter ended June 2024, the company’s revenue decreased to ₹2,856.10 crore from ₹3,579.05 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹601.22 crore from ₹1,015.83 crore in the previous quarter.
Key metrics:
Established in 1958, Hindalco Industries Ltd is the flagship company of the Aditya Birla Group. The company and its subsidiaries mainly focus on producing aluminium and copper. They also manufacture aluminium sheets, extrusions, and lightweight products for packaging industries, including beverage and food containers, as well as foil products.
For the quarter ended June 2024, the company’s revenue increased to ₹22,155.00 crore from ₹22,140.00 crore in the preceding quarter. Meanwhile, the net profit increased to ₹1,471.00 crore from ₹1,412.00 crore in the previous quarter.
Key metrics:
Coal India Ltd primarily focuses on mining and producing coal and also runs coal washeries. The company’s main customers are in the power and steel industries. Other customers come from sectors like cement, fertilizers, and brick manufacturing.
For the quarter ended June 2024, the company’s revenue decreased to ₹389.71 crore from ₹488.05 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹87.46 crore from ₹3,336.22 crore in the previous quarter.
Key metrics:
Founded in 1966, Hindustan Zinc is the world’s second-largest integrated producer of zinc and lead, as well as the fifth-largest silver producer, with an annual output of about 714 tonnes. The company holds around 75% of the growing zinc market in India. Its headquarters are located in Zinc City, Udaipur, and it has zinc-lead mines and smelting facilities throughout Rajasthan.
For the quarter ended June 2024, the company’s revenue increased to ₹8,130.00 crore from ₹7,550.00 crore in the preceding quarter. Meanwhile, the net profit increased to ₹2,358.00 crore from ₹2,042.00 crore in the previous quarter.
Key metrics:
India has a competitive advantage in steel and alumina production and conversion costs. Its strategic location provides export opportunities to both developed and rapidly growing Asian markets. As of FY22, there were about 1,319 reporting mines in India, with 545 for metallic minerals and 774 for non-metallic minerals.
Minerals are valuable natural resources that are crucial raw materials for key industries, making the growth of the mining industry important for the overall industrial development of the country. India is rich in various metallic and non-metallic minerals, which supports the growth of its mining sector. The country is mostly self-sufficient in metallic minerals like bauxite, chromite, iron ore, lignite and mineral fuels like coal and lignite. The mining industry can significantly boost GDP growth, increase foreign exchange earnings, and give key sectors like construction, infrastructure, automotive, and energy a competitive advantage by providing essential raw materials at reasonable prices.
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.
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