Best Metal Stocks in India

Tanushree Jaiswal Tanushree Jaiswal

Last Updated: 2nd June 2025 - 03:54 pm

10 min read

The metal sector has become one of India's most exciting investment opportunities in 2025. This industry drives our country's growth by providing essential materials for building roads, homes, cars and technology. India now stands as the world's second-largest steel producer and fourth-largest iron ore producer, making metal stocks a key part of our economy. 

The metal sector contributes about 2% to India's GDP and holds a 6.2% weight in the Industrial Production Index. For investors today, metal stocks present a unique chance to benefit from India's push toward becoming self-reliant and achieving the goal of a 5-trillion-dollar economy by 2030.
 

Here's the table that provides a quick overview of the top metal stocks in India for 2025, ranked based on their ROE performance.

List of Metal Stocks in India - A Quick Overview

As of: 20 Jun, 2025 3:41 PM (IST)

CompanyLTPPE Ratio52W High52W LowAction
Lloyds Metals & Energy Ltd. 1467.9 53.00 1,545.50 674.80 Invest Now
NMDC Ltd. 67.94 9.10 91.87 59.53 Invest Now
APL Apollo Tubes Ltd. 1769.8 64.90 1,936.00 1,272.70 Invest Now
Jindal Stainless Ltd. 670.2 22.00 848.00 496.60 Invest Now
Hindalco Industries Ltd. 649.15 9.10 772.65 546.45 Invest Now
JSW Steel Ltd. 1007.55 70.30 1,074.90 854.15 Invest Now
Shyam Metalics and Energy Ltd. 827 25.40 956.90 628.25 Invest Now
Jindal Steel & Power Ltd. 896.25 32.50 1,097.00 723.35 Invest Now
Steel Authority of India (SAIL) Ltd. 127.48 22.20 159.30 99.15 Invest Now
Tata Steel Ltd. 151.97 55.50 182.95 122.62 Invest Now
 

Lloyds Metals

Lloyds Metals and Energy Ltd. (LMEL) mines iron ore and has made sponge iron in Maharashtra, India, for over 50 years. The company operates three main businesses: mining, sponge iron production and power generation, while also trading pellets. 

LMEL benefits long-term investors who want exposure to India's growing steel demand and Nifty Metal sector growth. LMEL suits investors who believe in India's industrial development and want to invest in the complete steel value chain from mining to finished products.

NMDC Ltd.

National Mineral Development Corporation (NMDC) is India's largest iron ore producer, operating mechanised mines in Chhattisgarh and Karnataka for over 65 years. 

This government-owned Navratna company produces 45 million tons annually and plans to reach 100 million tons by 2030. NMDC attracts conservative investors seeking stable dividend-paying stocks with government backing and exposure to India's infrastructure growth.

APL Apollo

APL Apollo Tubes Limited is India's largest structural steel tube manufacturer, with a 4.3 million tonnes annual capacity and exports to 20 countries. The company produces pre-galvanised, structural and MS black pipes serving the construction, infrastructure and real estate sectors across 29 Indian cities. APL Apollo attracts growth investors seeking exposure to India's construction boom and housing demand through nifty metal stocks. 

Jindal Stainless

Jindal Stainless Limited (JSL) is India's leading stainless steel producer and has ranked among the world's top five manufacturers outside China since 1970. The company operates manufacturing plants in Haryana, Odisha and Indonesia, producing flat and long stainless steel products for over 60 countries. 

JSL attracts premium investors seeking speciality metal exposure beyond traditional carbon steel through nifty metal stocks. The company's strong export presence and focus on high-value products position it well for long-term growth.

Hindalco

Hindalco Industries leads the world in aluminium rolling and recycling with operations across ten countries. Part of the Aditya Birla Group, the company controls everything from mining bauxite ore to making finished aluminium and copper products. 
Growth investors benefit most because electric vehicles and renewable energy need more aluminium. Hindalco's ownership of Novelis gives it global reach, making this stock perfect for portfolios focused on future technology trends.

JSW Steel

JSW Steel stands as India's top private steel maker with factories across the country. The company produces 35.7 million tons yearly and operates worldwide with mines in three countries. Started in 1982, JSW Steel earned $21.2 billion in 2023. 
Long-term investors benefit most because steel demand grows with India's building boom. The company's global reach also makes it safer than smaller steel firms.

Shyam Metalics

Shyam Metalics and Energy Limited is an integrated metal producer specialising in long steel products and ferro alloys with 15.13 MTPA capacity across seven plants in West Bengal, Odisha and Indore. 
The company operates captive power plants totalling 376 MW and exports to over 40 countries while being among India's largest ferro alloys producers. Shyam Metalics attracts mid-cap growth investors seeking diversified exposure to specialty metals and ferro alloys within Nifty Metal sector opportunities. 

Jindal Steel

Jindal Steel & Power produces 9.6 million tons of steel yearly, with operations across India, Africa and Australia. Founded in 1979 by the Jindal family, the company also generates 1634 MW of its own electricity. 
Value investors benefit most because JSP makes its own power, reducing costs compared to other metal stocks in India. The company's steady expansion since 1952 shows reliable growth for conservative portfolios seeking industrial exposure.

SAIL

Steel Authority of India Limited (SAIL) is India's largest steel producer and a Maharatna government company operating since 1973 with five integrated steel plants. 

The company owns iron ore and coal mines, ensuring a steady raw material supply while planning to double production capacity by 2030. SAIL benefits value investors seeking undervalued government stocks with strong asset backing and dividend potential from the Nifty Metal sector. 

Tata Steel

Tata Steel operates as one of the world's largest steel makers with 35 million tons yearly capacity across five continents. Founded in 1907 as Asia's first private steel company, it earned ₹2,29,171 crore in 2024. 
Conservative investors prefer Tata Steel because it owns iron mines, making it less dependent on suppliers. The company's global spread across India, Europe and Asia reduces single-market risks, creating steady returns for retirement portfolios.

Overview of the Metal Industry in India

The metal industry in India offers strong opportunities for both short-term and long-term investors. The government plans to increase steel production capacity from current levels to 300 million tonnes by 2030, which creates huge growth potential. 
India produced 84.9 million tonnes of crude steel in the first nine months of 2024, showing steady growth. The aluminium sector also shows promise, with India being the world's second-largest aluminium producer at 3.15 million tonnes in 2024.

The Production Linked Incentive scheme for speciality steel, launched in January 2025, will bring in new investments worth 29,500 crores and create jobs for 17,000 people. For investors, this means the best metal stocks in India have strong government support and growing demand from both domestic and international markets.

What are Metal Stocks?

Metal stocks are shares of companies that dig up metal ores from the ground and turn them into useful metals like steel, aluminium and copper. These companies handle everything from mining iron ore to making the steel that goes into cars and buildings. When you buy metal stocks, you own a piece of a business that creates the basic materials our modern world needs.

The value of these metal company stock prices goes up and down based on how much people want to buy metals and what it costs to make them. For example, when construction companies need more steel for new buildings, steel company stock prices often rise. 
The metal stocks today depend on factors like government infrastructure spending, global demand and the cost of raw materials. These companies benefit when economies grow and need more basic materials for development and construction projects.

Types of Metal Stocks

The best metal stocks can be grouped in two main ways that make it easier to pick the right investments for your goals.

Based on Market Segment

  1. Industrial Metal Stocks: These companies make metals that factories use to build products like cars, machines and electronics. They focus on metals like steel, aluminium and copper that industries need every day.
  2. Mining Stocks: These companies dig metals and minerals out of the ground from mines. They find and extract raw materials like iron ore, bauxite and coal that other companies later turn into finished metals.
  3. Metal Processing Stocks: These companies take raw metals and change them into products that builders and manufacturers can use. They roll steel into sheets, make metal pipes and create speciality metal products.

Based on Market Capitalisation

  1. Large Cap Metal Stocks: These are the biggest metal companies with market values over 20,000 crores. They offer steady returns and lower risk, making them good choices for careful investors who want stable growth.
  2. Mid-Cap Metal Stocks: These medium-sized companies have market values between 5,000 and 20,000 crores. They grow faster than large companies but carry more risk, appealing to investors who want balanced metal investing opportunities.
  3. Small-Cap Metal Stocks: These smaller companies have market values under 5,000 crores. They can grow very quickly but also face higher risks, attracting investors who want high growth from metal sector stocks.

Features of Metal Stocks in India

  • Capital-Intensive Industry: Metal companies need huge amounts of money to buy mining equipment, build factories and upgrade technology. This means these companies often borrow money, which affects their financial health and profit margins during different economic periods.
  • Dependence on Global Demand: The success of metal stocks depends heavily on the world's demand for metals. When countries build more roads, bridges and buildings, demand goes up and metal companies make more money from higher prices.
  • Cyclical and Sensitive to Economic Cycles: Metal stocks fluctuate with the economy's health. During good economic times, construction and manufacturing increase, raising metal prices. When economies slow down, metal stocks often fall in value.
  • Impacted by Government Influence: Government decisions about taxes, import duties and trade policies directly affect metal companies. New infrastructure projects and policies like "Make in India" can boost demand for metals and help stock prices grow.
  • Growth Potential: The metal industry in India has strong growth opportunities because the government plans to spend heavily on roads, railways and housing projects. This creates long-term demand that significantly benefits top metal stocks.

Government Initiatives That Positively Impact Metal Stocks in India

The Indian government has launched several initiatives that directly support the metal industry and create more demand for metal products, making these investments more attractive to investors.

  • National Steel Policy 2030: The government aims to increase India's steel production capacity to 300 million tonnes by 2030. This policy provides a clear roadmap for growth and encourages companies to expand their operations, which benefits investors in metal stocks.
  • Production Linked Incentive Scheme: The PLI scheme for speciality steel offers financial rewards to companies that increase production. This program brings in investments worth 29,500 crores and creates jobs for 17,000 people, strengthening the best metal stocks in the market.
  • PM Gati Shakti National Master Plan: This plan connects mining areas with steel plants through better roads and railways. Improved transportation reduces metal companies' costs and makes their operations more efficient, boosting their profitability and stock performance.
  • Infrastructure Development Programs: Massive projects like highway construction, smart cities and housing schemes under PM Awas Yojana create huge demand for steel and other metals. These programs provide steady business for top metal stocks over many years.
  • Make in India and Atmanirbhar Bharat: These campaigns encourage the use of Indian-made steel in government projects instead of importing from other countries. This policy creates guaranteed demand for domestic metal companies and reduces competition from foreign suppliers.
  • Mining Reforms and Policy Changes: The government has made it easier for companies to get mining licenses and extract raw materials. New rules allow companies to sell up to 50% of their production in open markets, which increases revenue opportunities.

Risks of Investing in Metal Stocks in India

  • Market Volatility: Metal stock prices change quickly and dramatically due to global events, supply shortages and changes in demand. 
  • Cyclical Nature of the Industry: The metal industry follows economic cycles, performing well during good times and struggling during recessions. 
  • Global Competition and Currency Risks: Indian metal companies compete with cheaper producers from other countries who may have lower labour costs. 
  • Environmental Concerns and Resource Depletion: Metal companies must comply with strict environmental rules, which can increase costs or force operations to shut down. 
  • Regulatory and Operational Risks: Government policy changes regarding mining permissions, environmental standards, or import duties can suddenly impact metal companies. 
  • Financial Risks: Many metal companies borrow large amounts of money to fund their operations and expansion projects. High debt levels can create problems during tough economic periods when companies struggle to repay loans.

How to Invest In Metals Stocks?

  1. Open a trading account with 5paisa to buy metal stocks in the NSE. We offer easy-to-use trading platforms, research tools and expert guidance to help you invest in metal stocks confidently.
  2. Research different metal companies and check their financial health, market position and growth plans. Look at companies that make steel, aluminium, copper and other metals traded in the stock market.
  3. Start small and spread your money across different metal companies to reduce risk. Keep track of metal share price movements and global trends that affect these businesses.
  4. Stay updated on news about infrastructure projects, construction demand and government policies that impact metal stocks to buy. This knowledge helps you make smart choices about when to invest.

Key Metrics for Metal Stocks
 

  • Return on Equity (ROE): It shows how well a company uses shareholders' money to make profits. Look for metal companies with ROEs above 15%.
  • Debt-to-Equity Ratio: This tells you how much debt a company has compared to its ownership value. Lower ratios mean safer investments.
  • Current Ratio: This measures whether a company can pay its short-term bills. Metal companies with ratios between 1.5 and 2.0 are usually financially stable.
  • Gross Profit Margin: This shows how much money companies keep after paying production costs. Higher margins mean better pricing power and efficiency.
  • Operating Cash Flow to Debt Ratio: This checks if companies can cover their debts with cash from operations. Higher ratios mean lower risk.
  • Price-to-Book Ratio: This compares a stock market stocks' price to its actual book value. Lower ratios (1 and below) can indicate undervalued investment opportunities.
  • Dividend Yield: This shows how much income you get from owning the stock. While many metal companies pay steady dividends to shareholders, higher yields don’t necessarily mean consistent payments, so check the company’s dividend history. 

What to Check Before Investing in Metal Stocks?

  • Government Policy Impact on Metal Stocks: Government rules about mining, taxes and trade policies directly affect metal companies' profits and growth. Changes in environmental laws or import duties can significantly impact stock prices.
  • Industry-Specific Factors: Technology improvements, production costs and labour issues within the metal industry affect company performance. Companies that adopt new technologies often perform better than their competitors.
  • Global Economic Conditions: When the world economy grows, demand for metals increases, pushing up metal share prices. During economic slowdowns, metal demand falls, affecting company profits and stock values. For example, the new tariffs imposed by the US can adversely affect metal prices if metal exports slow down.
  • Domestic Supply and Demand: India's construction, manufacturing and infrastructure projects create demand for metals. Higher domestic demand usually means better profits for metal companies in the country.
  • Market Capitalisation: This shows the total value of a company's shares in the stock market. Large companies (above Rs. 20,000 crores) are usually more stable than smaller ones.
  • 5-Year Average ROI: This tells you how much money investors made from the stock over five years. It helps you understand the company's long-term performance track record.
  • Fundamental Score: This is a rating between 1 and 10 that combines different factors, such as profitability, growth and financial health. Higher scores indicate better investment opportunities.

Technical Analysis of Metal Stocks in NSE

  • Chart Patterns Show Strong Growth Signals - Metal stocks on NSE display clear upward trends through moving averages and support levels. The metal industry in India shows consistent price movements that help traders make smart decisions. Charts reveal breakout patterns that signal good entry points for investors.
  • Volume Analysis Confirms Market Interest - Trading volumes in metal stocks have increased significantly over recent months. High volume during price rises shows real buyer interest in these companies. When you invest in metal stocks, checking trading volume helps confirm if price movements are genuine and sustainable.
  • Technical Indicators Point to Positive Momentum - Using RSI and MACD indicators shows metal stocks gaining strength in the current market cycle. These tools help identify when stocks might be ready to move higher or lower. The metal industry in India benefits from strong technical signals across multiple timeframes.
  • Price Targets Based on Technical Levels - Resistance and support levels provide clear price targets for metal stock investments. Fibonacci retracements help traders find good buying opportunities during market corrections. Smart investors use these technical levels to plan when to invest in metal stocks for maximum returns.

Also Read: Best Precious Metals Stocks in India

Conclusion

The top 10 metal stocks in India offer great chances for smart investors in 2025. These companies help build India's future through roads, buildings and factories. Metal investing works best when you understand the risks and rewards. 
Before you start metal investing, check each company's debt levels, profit margins and growth plans. Remember that metal stocks move up and down with the economy and global demand, so patience helps you succeed. 
 

Frequently Asked Questions

How do Metal Stocks Perform in Economic Downturns? 

Who should invest in metal stocks in India? 

Why are iron ore stocks falling? 

What is a nifty metal index? 

What are the best metal stocks to invest in India for 2025? 

Why are metal stocks falling sometimes despite good company performance? 

Are metal stocks good for long-term investment? 

Which metal sector is currently showing the highest CAGR growth? 

How can I track the performance of metal stocks NSE? 

Are dividend-paying metal stocks a good choice? 

What are some High Dividend Yield Metal Stocks? 

Which metal is in demand in India? 

Which metal is a better investment? 

Why are steel stocks falling? 

Which metal is most profitable? 

Is it a good time to invest in top metal stocks in India?  

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