Top Metal Stocks in February 2025 – 5YR CAGR Basis: Jindal Stainless, NALCO and More

The metal sector, a cornerstone of industrial growth, has been exhibiting strong performance across various key minerals and non-ferrous metals. As we look into February 2025, the industry continues to benefit from robust demand across diverse sectors like infrastructure, energy, automotive, and construction.

The Ministry of Mines reported impressive production figures for FY 2024-25, with iron ore production increasing by 5.5% to 135 million metric tonnes (MMT) from the previous year. This growth comes after record production in FY 2023-24, reflecting strong demand in the steel industry, one of the largest consumers of iron ore.

Similarly, manganese ore production rose by 6.2%, and primary aluminium production grew by 1.2%, marking a positive trend in the non-ferrous metal sector. Moreover, India remains the second-largest producer of aluminium, one of the top-10 producers of refined copper, and the fourth-largest iron ore producer in the world.

In this context, let’s take a look at the top metal sector stocks based on their 5-year CAGR performance.

Top Metal Sector Stocks in February 2025

Note: The best metal sector stocks list provided here is as of February 03, 2025. The stocks are sorted as per their 5-year CAGR.

Overview of the 5 Best Metal Stocks in India

1. Jindal Stainless Ltd

Jindal Stainless is India’s leading stainless steel manufacturer with a consolidated annual turnover of ₹38,562 crore (USD 4.7 billion) in FY24. The company operates 16 stainless steel manufacturing and processing facilities across India and globally, with a focus on sustainability and innovation, aiming to achieve Net Zero by 2050.

In Q3 FY25, Jindal Stainless reported a 5.4% year-on-year decline in net profit, which stood at ₹654.84 crore. However, the company saw an 8.5% increase in revenue from operations, reaching ₹9,907.30 crore, driven by a 15% growth in sales volume despite challenges in the export market.

Key metrics:

• ROCE: 20.01%
• ROE: 20.06%

2. National Aluminium Co Ltd

National Aluminium Company Limited (NALCO) is a leading Navratna public sector enterprise in India, founded in 1981. NALCO operates one of the country’s largest integrated bauxite, alumina, and aluminium production facilities, contributing significantly to the Indian aluminium industry.

In Q3 FY23, NALCO reported a 61% sequential increase in net profit, reaching ₹274 crore, compared to ₹170 crore in the previous quarter. The company’s net sales turnover for the quarter was ₹3,290 crore, driven by higher production volumes and global aluminium price improvements.

Key metrics:

• ROCE: 17%
• ROE: 14.45%

3. Jindal Steel & Power

Jindal Steel & Power (JSP) is a leading Indian conglomerate with a strong presence in steel, mining, power, and infrastructure sectors. Operating across India, Africa, and Australia, JSP has emerged as a global leader in its industries, driven by innovation and a commitment to the vision of Make in India.

For Q3FY25, JSP’s net profit declined to ₹950.88 crore, a significant decrease from ₹1,927.99 crore in the same quarter last year. Revenue remained almost flat at ₹11,750.67 crore, reflecting modest growth in steel sales despite challenging market conditions.

Key metrics:

• ROCE: 12.02%
• ROE: 14.18%

4. JSW Steel Ltd

JSW Steel, the flagship company of the diversified JSW Group, is one of India’s leading steel manufacturers, with a capacity of 35.7 MTPA across India and the USA. The company is known for its excellence in steel production, innovation, and sustainability practices.

In Q3 FY25, JSW Steel reported a 70.3% decline in consolidated net profit, falling to ₹717 crore, driven by lower steel prices. Total revenues for the quarter stood at ₹41,378 crore, showing a marginal 1.3% year-on-year decline.

Key metrics:

• ROCE: 13.28%
• ROE: 12%

5. Vedanta Ltd

Vedanta Limited, a leading global natural resources conglomerate, operates in sectors like aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferro alloys, and more. With assets across India, South Africa, Namibia, and Liberia, Vedanta focuses on sustainability, growth, and long-term value creation.

In Q3 FY25, Vedanta reported a 76.2% increase in net profit, reaching ₹3,547 crore. This surge was attributed to improved operational efficiencies, robust cash flows, and favourable market conditions.

Key metrics:

• ROCE: 27.25%
• ROE: 9.27%

Debt-to-Equity Ratios of Top Metal Sector Companies

Sub-Sectors of Top Metal Companies

Conclusion

The metal sector in India remains a strong pillar of industrial growth, driven by robust demand in key industries such as infrastructure, energy, automotive, and construction. While the market conditions may vary and challenges persist, these companies continue to show promising 5-year CAGR performance, signalling their ability to adapt and thrive.

Investors looking to capitalise on the metal sector should carefully consider the financial health, growth potential, and risks associated with each company. As always, it’s important to conduct thorough research or consult with a financial advisor before making investment decisions, ensuring they align with individual financial goals and risk tolerance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.