Top 10 Metal Stocks in India: The initial practice of manufacturing metals first began in India. Long back in 1800 BC, archaeological sites were found in Uttar Pradesh that will provide evidence of iron implements.
Post-Independence, Indian leaders realized that there has been at least one sector that will provide growth to the economy. So the entire focus shifted to the metal industry.
To achieve this goal, it was very much necessary for the country to develop the following sectors as metal was the common link:-
|Primary Sector||Raw Materials|
|Tertiary Sector||Services Sector|
We have been using different types of metals in our day-to-day lives daily. For example:
- When we wake up in the morning, the first thing we do is put the phone on charge. The charger contains aluminum.
- The bridge we travel on, our fridge and even our cars are made of iron.
- A train for traveling is made of stainless steel.
From this, we can say that metals are a part of our daily life.
With the passage of years, the metal industry has immensely contributed to India’s growth.
Currently, India produces over 87 minerals, which mainly include four fuels, 10 metallic, 47 non-metallic, 3 atomic, and 23 minor minerals.
There are several schemes laid out in the budget, like:
- Expansion of railway networks
- Developing a shipbuilding industry
- Defense sector for private industries
- Growth in the automobile sector
- 20 million houses for the “Housing for All” scheme as launched by the government.
- The development of smart cities
- Power to all.
All the above schemes completely rely on the metals that have become a boon to metal industries and metal stocks.
Classification of the Metal Sector:
The entire metal sector is classified into 4 groups. The following are the main metal groups:
Top 10 Metal Stocks in India
Here is the list of Top 10 Metal Stocks in India with Industry.
1. Steel Industry:-
India has already replaced Japan in the production of steel by producing around 111.2 million tons of steel in 2019. Through this, India has become the second-largest steel producer.
The steel industry contributes nearly 2% of the GDP of the country.
According to the World Steel Association, for every two jobs created in the steel industry, there are 13 new jobs created across the supply chain.
The Ministry of Steel has proposed increasing the production of steel to 300 million tons by 2030–31.
The best steel metal stocks that contribute more than 50% capacity to the steel industry are as follows:
1. Tata Steel:-
Tata Steel, established in 1907, was Asia’s first integrated steel company.
It has its manufacturing units in Jamshedpur, Jharkhand, Odisha, and Kalinganagar.
Now it also operates in Europe.
Its total capacity is around 34 million tons per annum.
|Earnings Per Share (EPS)||64.14|
SAIL, formed in 1974, is a public-sector enterprise.
The company was formed to promote the economic growth of the company.
It is now the 20th largest steel producer in the world and the 3rd largest in the country.
It produces iron and steel and has its plants located in Bhilai, Duragpur, Burnpur, Bhadravathi, and Bokaro.
|Earnings Per Share (EPS)||6.00|
3. JSW Steel:-
JSW Steel, founded in 1982, started as a single facility unit and is now the second-largest steel company in India.
It has grown with so much intensity that now it has a capacity of 18 million tons per annum.
The company is the leading manufacturer as well as exporter of coated steel.
Its units are located in Karnataka, Tamil Nadu, and Maharashtra.
The company is also present in the United States, Chile, and Mozambique, where it provides the countries with plate and pipe plants as well as mining facilities.
|Earnings Per Share (EPS)||69.48|
2. Copper Industry:-
The copper industry hasn’t flourished in India the way the steel industry did.
There is some quantum of copper that is imported into India because the manufacturing is low due to outdated technology, improper infrastructure, high funding costs, lack of skilled workers, and high setup costs.
The following are the main copper stocks in this sector:
HCL, founded in 1967, is a government-owned corporation in the Central Public Sector Enterprise under the Ministry of Mines.
Its plants are located in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, and Jharkhand.
The company is engaged in several activities like mining, smelting, refining, beneficiation, and continuous cast rod manufacturing.
The company is accredited with an ISO 9002 certification for the production of continuous cast rods.
|Earnings Per Share (EPS)||3.87|
Initially, the name of the company was Shri Krishna Strips when it was formed in 1981. Later, it was changed to Archotech Limited.
The company manufactures copper and produces copper alloy products and aluminum products like plates, bar sheets, rods, and strip foils.
The company established a very niche market by producing micro-thin foils up to 0.035mm.
Its main plant is located in Bawal, Haryana.
|Earnings Per Share (EPS)||(5.72)|
BIL was founded in 1985 and has its headquarters in Hyderabad.
The company is the second-largest producer of copper products like copper rods, busbars, strips, pipes, and other things.
The company has also diversified its horizons by entering the telecom sector, real estate, and also by producing solar products.
|Earnings Per Share (EPS)||1.37|
3. Zinc Industry:-
Zinc is the fourth most widely used metal in the country, but the major production of zinc is in China, as it accounts for 33.8% of the total world production.
Zinc is mainly used in the steel market for galvanizing.
Top Zinc stocks are as follows:-
The company is India’s largest and the world’s second-largest zinc miner.
The company was incorporated in 1966, as a Public Sector Undertaking, and in the name of Metal Corporation of India.
Currently, the company is a subsidiary of Vedanta Limited, where the company owns 64.9%, while the government holds a very minor stake of 29.5%.
The average reserve base of the company is 114.7 million tons.
|Earnings Per Share (EPS)||22.79|
8. Mewat Zinc Limited:-
This company was also incorporated as a Public Sector Undertaking in 1991.
It produces zinc metal and other related products.
The main business of the company is conducted out of India but has its headquarters in New Delhi.
|Earnings Per Share (EPS)||0.05|
9. Sunrise Zinc Limited:-
The company is an unlisted public company located in South Goa.
It was established in 1993. The company manufactures electrolyte zinc, copper sulphate, and Good Ordinary Brand (GOB) zinc.
4. Aluminium Industry:-
Aluminium is the fastest-growing non-ferrous metal.
It has got several distinct properties, like higher strength, resistance to corrosion, etc.
The following are the top aluminium stocks:
10. Hindalco Industries:-
The company is a subsidiary of the Aditya Birla Group and has become the world’s largest aluminium producing company as well as the biggest primary aluminium producer in Asia.
It has a subsidiary company, Hindalco Almex Aerospace Limited, that produces aluminium for aerospace, sporting goods, etc.
The main plants are located in Odisha, West Bengal, Maharashtra, Uttar Pradesh, etc.
|Earnings Per Share (EPS)||34.76|
The company, formed in 1981, is a public sector undertaking, managed by the Ministry of Mines.
The company has the following operations: alumina refining, bauxite mining, aluminium smelting and casting, rail and port operations, and power generation.
|Earnings Per Share (EPS)||16.07|
This company is also a public sector undertaking, incorporated in 1965.
The company made the following contributions:
- first to roll aerospace material
- first to set up the hottest rolling mill in the country.
- first to increase the production of alloy rods for conductors used in power transmission.
The company was taken over by Vedanta Resources in 2001.
Here we have tried to cover the major portion of the metal industry and have provided you with the best metal stocks.
Recently, the Indian metal industry didn’t succeed the way it should because of the trade wars, pandemic, reduced demand, etc.
The government has started providing support to these industries that will help them boost their performance.
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