Evergreen Metal Stocks for Long Term

Best Metal Stocks to Invest
Best Metal Stocks to Invest

by Tanushree Jaiswal Last Updated: Sep 07, 2023 - 05:09 pm 330 Views

he pandemic has significantly lessened globally, and the economy is starting to rebound. As a result, there is a greater demand for commodities, particularly steel and iron.
In terms of supply, Indian investors will soon have a fantastic chance to increase their market share abroad. Best Metal Stocks naturally belong in a sensible investor's portfolio as a result.
But where can you even begin to buy Top Quality Metal Stocks? Prior to making a decision about where to invest your money, determine which Metal Stocks are the best.
While some metals businesses smoothly integrate their mining activities, others do not.

Vital Considerations Before Investing in Metal Sector Stocks

Before committing your funds to the top metal stocks in India, it's crucial to take into account the following aspects:

Choosing Correct Metal Shares:
Choose metals based on supply-demand dynamics. Consider gold, silver, and industrial metals like stainless steel. Beware of sudden value drops due to price volatility.
Measuring Risk Factors:
Recognize inherent risks. Fluctuations in metal prices can result from technical differences, supply-demand changes, geopolitical influences, and more. Economic challenges may drive metal prices up, benefiting investors.
Perfect for Long-Term Investors:
Evaluate risk tolerance due to potential price volatility. Focus on cost-efficient leading metal stocks for more stability during market shifts. Balance short-term fluctuations with long-term growth potential.
Understanding the Metal-Economy Correlation:
Metal stock prices often move inversely to economic activity. During economic downturns, investors turn to metals to hedge against inflation caused by central banks lowering interest rates, as observed during the pandemic.

Overview of the Best Metal Stocks

1. Tata Steel

Key Ratios FY'23
EBITDA Margin (%) 10.3
Interest Coverage Ratio (x) 3.4
ROE (%) 5.64
EV/EBITDA (x) 11.5


The growth trajectory, coupled with a favourable demand landscape in the domestic market and the progressive expansion of additional capacity, is expected to contribute to sustaining a robust business risk profile over the medium to long term.

Tata Steel Share Price

2. Vedanta

Key Ratios FY'23
EBITDA Margin (%) 23
Interest Coverage Ratio (x) 5.53
Debt / EBITDA (x) 1.90
Net Debt / Equity (x) 0.081
ROCE (%) 23.8
ROE (%) 20.4


Vedanta stands to gain significantly from accelerated progress in operational cost efficiencies, robust volume growth in operational entities, and timely and substantial refinancing by VRL. These factors have the potential to enhance Vedanta’s profitability, strengthen its financial leverage, and provide increased financial flexibility.

Vedanta Share Price


3. JSW Steel

Key Ratios FY'23
EBITDA Margin (%) 17
Interest Coverage Ratio (x) 3.58
Debt / EBITDA (x) 3.14
Net Debt / Equity (x) 0.96
ROCE (%) 8.41
ROE (%) 5.64
EV/EBITDA (x) 11.5


The growth trajectory, coupled with a favourable demand landscape in the domestic market and the progressive expansion of additional capacity, is expected to contribute to sustaining a robust business risk profile over the medium to long term.

JSW Steel Share Price

4. Hindalco Industries

Key Ratios FY'23
EBITDA Margin (%) 10
Interest Coverage Ratio (x) 6.22
Debt / EBITDA (x) 2.57
Net Debt / Equity (x) 0.62
ROCE (%) 11.3
ROE (%) 11.7
EV/EBITDA (x) 6.8


Hindalco demonstrates a positive outlook with sustained operational strength, evident through robust sales volumes and an increasing share of value-added products across divisions. The company's strong liquidity position, consistent cash flow generation, and strategic debt management underscore its financial resilience. Amid these favorable factors, Hindalco's focus on enhancing credit metrics and its ability to navigate market dynamics position it well for continued growth and financial stability.

Hindalco Industries Share Price

5. Coal India

Key Ratios FY'23
EBITDA Margin (%) 27
Interest Coverage Ratio (x) 52.4
Debt / EBITDA (x) 0.1
Net Debt / Equity (x) 0.08
ROCE (%) 71.4 
ROE (%) 56.0 
EV/EBITDA (x) 2.5


Coal India presents a promising outlook as it boasts remarkable financial strength. Its virtually debt-free status underscores its strong financial foundation. With an impressive dividend yield of 10.5% and consistent profit growth at a CAGR of 31.9% over the past 5 years, the company offers attractive returns to investors. Additionally, Coal India's exceptional track record of ROE, healthy dividend pay-out of 63.7%, and improved debtor days at 34.5 days collectively demonstrate its robust financial performance and responsible management.

Coal India Share Price


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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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