Tata Steel & 4 other stocks in focus after Govt proposes 12% safeguard duty on steel

On March 18, the DGTR proposed a 12 percent provisional safeguard duty on Flat Steel Products for 200 days, pending a final review. Imposed ad valorem, it aims to support domestic producers during the investigation. While the industry sought 25 percent, the DGTR set a lower temporary rate until a final decision.

The DGTR has recommended a safeguard duty on Non-Alloy and Alloy Steel Flat Products, including Hot Rolled and Cold Rolled coils, sheets, plates, HR Plate Mill Plates, Metallic Coated and Colour Coated Steel, whether profiled or not. Galvanneal-coated products with Zinc, Aluminium-Zinc, or Zinc-Aluminium-Magnesium are also included. The Finance Ministry must notify the duty.

Moreover, the authority noted a sharp surge in imports of these steel products, causing serious harm to the domestic industry. It highlighted critical circumstances where delays in safeguard measures could lead to irreparable damage, emphasizing the urgent need for immediate provisional safeguard measures.

Additionally, Kotak Institutional Equities noted that domestic steel prices already carry a 7 percent-8 percent import parity premium, limiting further hikes if a safeguard duty is imposed. While margins bottomed in Q3, potential supply reforms in China pose an upside risk, according to the brokerage.

Here are the steel stocks in focus after DGTR recommends 12% safeguard duty on select steel products;

1. Tata Steel Ltd

Tata Steel Limited is an India-based global steel company with an annual crude steel capacity of approximately 35 million tons per annum. The Company is primarily engaged in the business of manufacturing and distribution of steel products across the globe.

With a market capitalization of Rs 1.97 lakh crore, the shares were trading at Rs 158.60 per share, increasing around 2.55 percent as compared to the previous closing price.

2. JSW Steel Ltd

JSW Steel Limited is primarily engaged in the business of manufacturing and sale of iron and steel products. It is an integrated manufacturer of a diverse range of steel products with its manufacturing facilities located at Vijayanagar Works in Karnataka, Dolvi Works in Maharashtra, and Salem Works in Tamil Nadu.

With a market capitalization of Rs 2.52 lakh crore, the shares were trading at Rs 1,031.65 per share, increasing around 1.29 percent as compared to the previous closing price.

Also read: Maharatna stock trading at discount of more than 34% to add to your watchlist

3. Steel Authority of India Ltd

Steel Authority of India Limited is an India-based company that is engaged primarily in steel manufacturing business. The Company is engaged in the manufacturing and sale of iron and steel products. The Company’s business segments include five integrated steel plants and three alloy steel plants.

With a market capitalization of Rs 46,504.84 crore, the shares were trading at Rs 112.60 per share, increasing around 4 percent as compared to the previous closing price.

4. Jindal Steel And Power Ltd

Jindal Steel and Power Limited is an India-based steel producer. It operates through three segments: Iron and steel products, Power, and Others. The Iron and steel products segment comprises of manufacturing of Steel products, sponge iron, pellets, and castings.

With a market capitalization of Rs 95,245.63 crore, the shares were trading at Rs 933.70 per share, increasing around 1.10 percent as compared to the previous closing price.

5. NMDC Ltd

NMDC Limited is involved in the exploration of a range of minerals including copper, rock phosphate, limestone, magnesite, diamond, tungsten, and beach sands amongst others. The Company’s segments include Iron Ore, Pellet, and Other Minerals & Services.

With a market capitalization of Rs 59,300.81 crore, the shares were trading at Rs 67.45 per share, increasing around 0.90 percent as compared to the previous closing price.

Written by Abhishek Singh

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