The Big Bulls on the stock market and among the most successful investors in the country are Rakesh Jhunjhunwala, Bullish on Commodities and Steel Stocks. Rakesh Jhunjhunwala said that there will be a tremendous bull run in steel stocks due to the rise in commodity cycle.
Global brokerage firms Morgan Stanley and UBS are now following the footsteps of Rakesh Jhunjhunwala. Both these brokerage firms said that steel prices have increased globally due to increased demand and demand is expected to pick up further.
Morgan Stanley said in its note, “We expect supercycle profitability in steel to be long-term and steel stocks will benefit significantly in India by increasing capital expenditure (Capex)”. The brokerage firm said that the upcycled trend in the Indian steel industry will last until 2023.
At the same time, UBS said that the steel sector has recovered significantly due to the situation created due to Covid-19. The government’s emphasis on recovery and infrastructure pipeline in India’s auto sector has led to recovery in domestic demand for steel, the brokerage firm said. Steel stocks will benefit from rising domestic demand as prices rise in international markets. Both brokerage firms placed bets on these steel stocks…
Tata Steel
Morgan Stanley’s favorite company in steel stocks is Tata Steel. Morgan Stanley has given a target price of Rs 1000 for the share of Tata Steel. While UBS has given its target price of Rs 900. Shares of the company closed at Rs 799.50, up 4.26% today. That is, according to Morgan Stanley the company will give 25% to investors this year and 12.5% according to UBS.
Morgan Stanley says the company will benefit from the industry’s upcycle as well as its strong balance sheet. At the same time, UBS says that Tata Steel’s management is focusing on improving its efficiency with project rationalization and cost management along with cost reduction, which will benefit its stocks.
JSW Steel
Morgan Stanley has upgraded JSW Steel’s stock price to Rs 590 in view of the company’s tremendous volume growth, lower iron ore prices and tremendous earnings of the company. At the same time, USB has given a target price of 500 rupees for its stocks in view of its capacity expansion along with improvement in margins in the company.
The shares of the company closed at Rs 467.35, up 4.98% in the stock market today. That is, according to Morgan Stanley, the company will give more than 26% returns to its investors this year. At the same time, UBS estimates that in the short term the company will give 7% return to its investors.
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