As metal sector sweats it off amid market volatility, know which stocks have borne the heat!

As metal sector sweats it off amid market volatility, know which stocks have borne the heat!

by 5paisa Research Team Last Updated: 2022-05-12T16:54:11+05:30

Weakness across geographies, unbridled inflation, war crisis and tepid Q4 results which have accelerated FII outflow has cast a spell on the Indian stock market. Since the beginning of this weak week, benchmark indices have lost more than 4.5% while the metal sector has corrected 12%. Lockdown in China has been a big blow to the commodity prices with a slowdown in demand, and further soaring inflation has led to a steep rise in the cost of manufacturing hurting the margin of commodity players.

Hindalco, Coal India, JSW Ispat, Tata Steel and Vedanta are the stocks to keep an eye on. Let us see why!

Hindalco released the financial result of Novelis Inc (a wholly-owned subsidiary of the company) on May 11. Net income from continuing operations (excluding special items) was $189 million, up 10% on YoY basis and Adjusted EBITDA of $431 million, was down 15% YoY basis. Novelis Inc announced that it will invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA. At closing bells , the shares of Hindalco closed at Rs 406.70, a loss of 3.75% over its previous close.

Coal India: Northern Coalfields Ltd (NCL), a subsidiary of Coal India, announced on Wednesday that it had planned capex of Rs 1,900 crore for the current fiscal year. The majority of capex in the current financial year will be spent on the procurement of heavy earth moving machines (HEMMs), the establishment of coal handling plants, and land acquisition to increase infrastructure. In today's session, Coal India closed at Rs 166.80, down by 1.85% or Rs 3.15per share.

JSW Ispat Special Products announced its results for the quarter and year ended on March 31, 2022. While consolidated net revenue for Q4 grew by 15% at Rs 1678.21 crore on YoY basis, EBITA came in at Rs 117.71 down by 43% and PAT was significantly down by 96.46% at Rs 3.29 on YoY basis. The stock has tumbled 18% in last one month. In today's session, the stock closed at Rs 29.35 down 5.93% or Rs 1.85 per share. 

Tata Steel: The Tata group stock is trading at a discount of 28% to its 52-week high of Rs 1534.6 logged on August 16, 2021. Since it declared its results early this month, the share has been tumbling and in the last five days, the stock has nose-dived 11.6%. Despite, the robust Q4 numbers wherein consolidated revenue jumped by 38.81% on YoY and stood at Rs 68710 crore and net profit jumped by 38% to Rs 9675.77 crore on YoY. In today's session, the shares of Tata Steel closed at Rs 1118.15 down 4.13% or Rs 48.15.

Vedanta is the metal stock that has taken the biggest blow in the last one week falling by 22.5%. The stock has nosedived after hitting a 52-week high a month back at Rs 440.75 and is closed today at Rs 312.35. For the quarter ended on March 31, 2022, consolidated net sales grew by 41.14% at Rs 39342 crore with 50.86% growth in EBITDA, but PAT de grew by 4.82% on YoY.

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