Metal Stock Picks For 2026: Jefferies highlights three names for up to 26% upside

Brokerage firm Jefferies has picked Tata Steel Ltd

., JSW Steel Ltd., and Jindal Stainless Ltd. as its three bets for the new year from within the Metals space, entering the new year with a positive view.

Jefferies has a price target of ₹230 on Tata Steel, which implies a potential upside of 26% from current levels. For JSW Steel, it has a target of ₹1,400, which implies an upside potential of 18%, while for Jindal Stainless, the ₹1,020 price target implies a 20% upside potential.

India's steel companies can see their volumes increase at a Compounded Annual Growth Rate (CAGR) of 6% to 9% over financial year 2026-2028, according to Jefferies, who went on to add that the reinstatement of safeguard duty should further lift steel prices domestically. Jefferies also expects spreads across Asia to recover from their 15-year lows as well.

Over the last 18 years, Jefferies highlights that whenever Tata Steel or JSW Steel shares have been bought when spreads are below ₹200 per tonne, they have gone on to deliver good returns in the subsequent one year.

Jefferies has gone on to raise the Earnings Per Share (EPS) estimates for Tata Steel and JSW Steel for financial year 2027 and 2028 by 9% and 17% owing to higher steel prices and by assuming Indian Hot Rolled Coil (HRC) prices of ₹54,000 - ₹54,500 per tonne, compared to the current spot price of ₹48,500 per tonne.

The brokerage has also gone on to raise EPS estimates for Hindustan Zinc and Hindalco by 4% to 7% for the same timeframe to factor in the higher Silver and Aluminium prices respectively.

Shares of Tata Steel are trading 1.1% higher on Monday at ₹185. The stock is up 40% in the last 12 months. Shares of JSW Steel are up 0.4% at ₹1,184, while those of Jindal Stainless are trading 1% higher at ₹864.3.