Global brokerage firm Jefferies has identified Tata Steel and Jindal Stainless as its preferred picks in the Indian steel sector, citing early signs of a recovery in both carbon and stainless-steel markets. The firm highlighted improving price spreads, a reduction in steel imports, and supportive government policies as key drivers for growth. Jefferies has projected a potential upside of around 23 per cent for Tata Steel, setting a target price of ₹200, while also assigning a ‘Buy’ rating to Jindal Stainless with a target of ₹800.
According to the brokerage, Jindal Stainless continues to demonstrate strong fundamentals and relatively stable margins compared to carbon steel players, making it an attractive long-term bet. Jefferies expects the sector to record robust volume growth of 8–10 per cent CAGR between FY25 and FY27, which, combined with stable valuations, underpins its optimistic outlook. Investor sentiment has already turned positive, with shares of Tata Steel, Jindal Stainless, and JSW Steel gaining following the report.
The bullish view is further supported by a 12 per cent safeguard duty imposed on flat steel imports, which has helped domestic steel prices rise by nearly 14 per cent so far this year. India has also emerged as the only major economy to have increased steel production by 33 per cent between 2019 and 2024, while global output fell by 1 per cent during the same period. These factors, Jefferies noted, are creating a favorable environment for Indian steelmakers to strengthen their market position and profitability in the coming years.
