Stocks To Buy: Three metal stocks that HSBC is betting on for up to 24% upside

Global brokerage firm HSBC has initiated coverage on the metals and mining sector with a broadly constructive outlook.

HSBC has initiated coverage on Hindalco Industries with a 'Buy' rating and a price target of ₹980 per share, implying a 24% upside from the stock's last closing price on Wednesday.

The foreign brokerage believes the impact of a series of setbacks at Novelis, Hindalco's US subsidiary, will begin to fade from the financial year 2027.

The brokerage has also initiated coverage with a 'Buy' on National Aluminium Company Ltd., with a price target of ₹291 per share, which suggests 13% upside from Wednesday's closing level.

For Tata Steel, HSBC has started coverage with a 'Buy' rating and a price target of ₹215 per share.

The brokerage firm expects losses in Tata Steel's Europe business to start easing, and the target implies 24% upside from the last close.

HSBC has a 'Hold' rating on Hindustan Zinc, with a price target of ₹470 per share.

While the brokerage said that it likes the company's silver and zinc exposure, it believes the stock's valuation, trading at a 10.3 times its EV/EBITDA multiple, remains rich.

The brokerage has also initiated coverage with a 'Hold' recommendation on Coal India, and a price target of ₹374 per share.

HSBC has initiated coverage with a 'Reduce' rating on Steel Authority of India Ltd. (SAIL), with a price target of ₹114 per share, and on NMDC, with a price target of ₹59 per share, citing muted profitability and rising capex pressures.