India is shaping the future of the global steel industry! In 2023, the country produced a staggering 140.2 million tonnes of steel, securing its spot as the world’s second-largest steel producer.
With demand for steel set to grow by 10% in the coming years, India’s booming steel sector is creating unparalleled opportunities for investors. While global steel growth hovers around 1.8%, India’s market is projected to grow by 8.6% and 7.7% in 2023 and 2024.
If you’re looking to make strategic investments, now is the perfect time to dive into the top 5 stocks in India that are driving this growth! Let’s get started.
5 Top Stocks to Invest in 2024 in the Steel Industry
| Stock Name | Stock price as of 5th Nov | Market Cap (₹ Cr) | P/E Ratio | P/B Ratio | Dividend Yield (%) | 5-Year Return (%) |
| Tata Steel | ₹151 | ₹2,08,475 Cr | 104.00 | 2.31 | 2.16 | 375.19% |
| JSW Steel | ₹989 | ₹2,51,319 Cr | 36.00 | 3.24 | 0.89 | 361.4% |
| Jindal Steel and Power | ₹926 | ₹1,05,645 Cr | 19.00 | 2.39 | 0.19 | 962.44% |
| Godawari Power & Ispat | ₹198 | ₹14,542 Cr | 15.00 | 3.23 | 0.45 | 2921.31% |
| Maithan Alloys | ₹1049 | ₹3,443 Cr | 5.00 | 1.10 | 0.51 | 149.18% |
Source: Dhan Stock Pages
Now let’s discuss these steel stocks one by one:
- Tata Steel
Tata Steel is a powerhouse in the global steel market, present across 50 countries. From mining iron ore to selling value-added steel products, it dominates every stage of the value chain.
With a market cap of ₹2,08,475 Cr, the share price of Tata Steel is at ₹150+, and it offers a solid dividend yield of 2.16%. Over the last five years, it’s delivered a whopping 375.19% return!
- JSW Steel
JSW Steel, a key player in India’s steel industry, is funded by the $23 billion JSW Group. Starting in 1982 with the acquisition of Piramal Steel Limited, it has grown into a giant across sectors like energy and infrastructure.
With a stock price of ₹1989 and a market cap of ₹2,51,319 Cr, JSW Steel stands strong. Its P/E ratio of 36.00 and dividend yield of 0.89% reflect solid financials. Over the last five years, it’s returned an impressive 361.4%.
- Jindal Steel and Power
Jindal Steel and Power Limited (JSPL) is a steel giant with deep roots in power, mining, and infrastructure.
As part of the OP Jindal Group, it operates major manufacturing plants in Raigarh, Angul, and Patratu. With ambitious plans to boost steel capacity by 65% to 15.9 MT by 2025, JSPL is gearing up for significant growth.
Share price of ₹926 and a market cap of ₹1,05,645 Cr, JSPL has a P/E ratio of 19.00 and an excellent 5-year return of 962.44%!
- Godawari Power & Ispat
Godawari Power & Ispat Ltd. (GPIL) is a major player in India’s steel, mining, and power industries. Analysts are confident about its growth, with strong buy recommendations.
Currently priced at ₹198, GPIL has a market cap of ₹14,542 Cr. Its record-breaking 5-year return stands at 2921.31%.
With a P/E ratio of 15.00 GPIL offers serious potential for investors.
Maithan Alloys
Maithan Alloys Ltd. is a leader in the ferroalloys market, exporting ferro manganese, silico manganese, and ferro silicon. With a net worth of ₹3,126 crore, this company is well-positioned for growth.
With a share price of ₹1049, and a market cap of ₹3,443 Cr, Maithan Alloys offers a low P/E ratio of 5.00 and a 5-year return of 149.18%.
Conclusion
As India’s construction boom drives steel demand, these stocks present strong opportunities for investors looking to capitalize on the growth. Whether you’re new to the market or a seasoned investor, staying informed is key.
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