Global brokerage firm Jefferies has reaffirmed its positive stance on India’s steel industry, citing recent government interventions and favorable market conditions as key drivers for growth. The firm has issued “Buy” ratings on major players including Jindal Stainless, Tata Steel, and JSW Steel, reflecting confidence in the sector’s resilience and potential.
A significant factor influencing this optimistic outlook is the Indian government’s imposition of a 12 per cent safeguard duty on flat steel imports in April 2025. This measure, set for a duration of 200 days, aims to protect domestic producers from the influx of cheaper foreign steel, particularly from China, Japan, and South Korea. Jefferies anticipates that this duty will bolster domestic steel prices and improve profit margins for Indian steelmakers.
In its latest analysis, Jefferies initiated coverage on Jindal Stainless with a “Buy” rating and a target price of ₹800, highlighting the company’s leadership in the stainless-steel segment and its robust financial performance. The firm also upgraded JSW Steel from “Hold” to “Buy,” raising the target price to ₹1,200, citing the company’s strategic positioning to benefit from the current market dynamics. Tata Steel remains a preferred pick, with Jefferies maintaining its “Buy” rating and setting a target price of ₹200, reflecting confidence in the company’s operational efficiency and growth prospects.
Jefferies projects a volume compound annual growth rate (CAGR) of 8–10 per cent for these companies over FY25 to FY27, driven by strong structural support and favorable market conditions.
The brokerage’s bullish outlook underscores the potential of India’s steel sector amid supportive government policies and stable valuations, positioning key players for sustained growth in the coming years.
