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Stocks to Buy: Goldman Sachs bets on metal stocks, sees up to 30% upside; NMDC gets 'sell'The domestic steel industry is transitioning from a cyclical to a more structural growth phase, with strong domestic demand expected to drive the next leg of expansion, brokerage firm Goldman Sachs wrote in its note on metals.By Meghna Sen  April 27, 2026, 9:44:23 AM IST (Published)2 Min ReadShares of Indian metal companies are in focus on Monday, April 27, after global brokerage Goldman Sachs initiated coverage on the sector with a constructive long-term outlook.

The brokerage said the domestic steel industry is transitioning from a cyclical to a more structural growth phase, with strong domestic demand expected to drive the next leg of expansion.

Goldman Sachs initiated a 'Buy' rating on JSW Steel with a price target of ₹1,490, implying a potential upside of 19% from current levels.

The brokerage cited strong capacity expansion plans, improving operating leverage, and better raw material security. It also mentioned the company's relatively favourable debt positioning.

Shyam Metalics also received a 'Buy' rating with a target of ₹1,065, which suggests a further upside of 30%.

Goldman Sachs pointed to its diversified product portfolio spanning carbon steel, stainless steel, and aluminium downstream products, along with lower leverage and consistent margins compared to peers.

On the other hand, the brokerage maintained a more cautious stance on some players. Tata Steel and Jindal Steel were both initiated with 'Neutral' ratings, with price targets of ₹210 and ₹1,335, respectively.

For Tata Steel, Goldman Sachs expects structural improvement in EBITDA across geographies until FY28, but flagged uncertainty around iron ore costs beyond FY30 as a key overhang on valuations.

In the case of Jindal Steel, the brokerage remains positive on capacity ramp-up, cost reduction potential, and operating leverage, but believes current valuations already factor in much of the upside.

Goldman Sachs initiated coverage on NMDC with a 'Sell' rating and a price target of ₹84, citing concerns around slower progress in diversification efforts, which could weigh on earnings in the medium term.

It also said that the stock's valuation appears stretched, trading above its long-term averages.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsJSW Steelmetal stocksNMDCShyam Metalics and EnergyTata Steel