The BSE metal index was the best performing sectoral index among peers in the last one year. It gained about 150 percent - over three times higher than the benchmark Sensex's 44 percent rise in the same period. 8 out of 10 stocks from the sector have turned multibaggers. Tata Steel, JSW Steel, and Steel Authority Of India have in fact grown investors' wealth by over 3 times in just a year. (Data Source: ACE Equity).
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8 out of 10 stocks in the sector more than doubled investors' money. 4 of them were multibaggers. APL Apollo Tubes topped the list with gains of 317 percent.
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Spark Capital Research sees more positive in the steel sector. "Steel sector is at crossroads. With stocks at a decadal high. An Edge of the Cliff argument would be that Global Steel inventories would normalize, the liquidity-driven demand will wane and prices will crash to previous levels. On the other hand, Tip of the Iceberg argument would be that China is serious on its path to controlling production, lowering exports, and decarbonisation - meaning higher capex / opex; hence, structurally we see better prices / margins compared to past cycles. Though we are little apprehensive about how decarbonisation will play out, we still belong to the “Iceberg” camp and see more positives." Here are 4 stocks that the brokerage is bullish on:
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Tata Steel Ltd. | In a year, the stock has surged 259 percent to Rs 1229 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 1600.
JSW Steel Ltd. | In a year, the stock has surged 254 percent to Rs 701 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 775.
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Steel Authority Of India Ltd. | In a year, the stock has surged 251 percent to Rs 125 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 165.
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Jindal Steel & Power Ltd. | In a year, the stock has surged 132 percent to Rs 395 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 545.
![Spark Capital Research sees more positive in the steel sector. "Steel sector is at crossroads. With stocks at a decadal high, “An Edge of the Cliff” argument would be that Global Steel inventories would normalize, the liquidity-driven demand wanes and prices will crash to previous levels. “Tip of the Iceberg” argument would be that China is serious on its path to controlling production, lowering exports, and decarbonisation - meaning higher capex / opex; hence, structurally we see better prices / margins compared to past cycles. Though we are little apprehensive about how decarbonisation will play out, we still belong to the “Iceberg” camp & see more positives."](https://images.moneycontrol.com/static-mcnews/2021/05/steel-1.jpg "Spark Capital Research sees more positive in the steel sector. "Steel sector is at crossroads. With stocks at a decadal high, “An Edge of the Cliff” argument would be that Global Steel inventories would normalize, the liquidity-driven demand wanes and prices will crash to previous levels. “Tip of the Iceberg” argument would be that China is serious on its path to controlling production, lowering exports, and decarbonisation - meaning higher capex / opex; hence, structurally we see better prices / margins compared to past cycles. Though we are little apprehensive about how decarbonisation will play out, we still belong to the “Iceberg” camp & see more positives."")
![Tata Steel Ltd. | In a year, the stock has surged 259 percent to Rs 1229 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 1600.](https://images.moneycontrol.com/static-mcnews/2021/07/Tata-Steel-14072021.png "Tata Steel Ltd. | In a year, the stock has surged 259 percent to Rs 1229 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 1600.")
![JSW Steel Ltd. | In a year, the stock has surged 254 percent to Rs 701 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 775.](https://images.moneycontrol.com/static-mcnews/2021/07/JSW-Steel-14072021.png "JSW Steel Ltd. | In a year, the stock has surged 254 percent to Rs 701 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 775.")
![Steel Authority Of India Ltd. | In a year, the stock has surged 251 percent to Rs 125 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 165.](https://images.moneycontrol.com/static-mcnews/2021/07/SAIL-14072021.png "Steel Authority Of India Ltd. | In a year, the stock has surged 251 percent to Rs 125 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 165.")
![Jindal Steel & Power Ltd. | In a year, the stock has surged 132 percent to Rs 395 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 545.](https://images.moneycontrol.com/static-mcnews/2021/07/Jindal-Steel-and-Power-14072021.png "Jindal Steel & Power Ltd. | In a year, the stock has surged 132 percent to Rs 395 on July 13, 2021. Spark Capital Research is bullish on the stocks and has recommended "Buy" rating on the stocks with a target of Rs 545.")
