In an interview with ET Now, Joshi said India’s steel and non-ferrous sectors remain well-positioned despite uncertainty around China’s demand recovery and the potential impact of Trump tariffs on global trade.
“Domestic demand remains robust, government capex continues at a good pace, and private capex is showing signs of a comeback,” Joshi said. “As restocking begins globally, LME prices could see better traction, creating operating leverage for Indian metal companies.”
Ferrous metals: Steel cycle showing resilience
Joshi expects steady earnings growth for major steel producers, supported by backward integration and cost efficiency gains.
JSW Steel may see calibrated improvement in EBITDA per tonne while Steel Authority of India (SAIL) remains well-positioned due to its strong domestic exposure. Overall, low global inventory levels and stable local demand could sustain earnings momentum through FY26, Joshi said.
Non-ferrous: Hindalco and aluminium recovery in focus
Among non-ferrous names, Joshi remains positive on Hindalco, backed by the recovery at Novelis and firm aluminium prices. He said: “Expectations of a broader aluminium rebound, along with cost rationalisation, should benefit Hindalco and similar plays in the coming quarters.”
Beyond core metals: NLC India stands out
Outside the traditional metal space, Joshi highlighted Neyveli Lignite (NLC India) as a standout opportunity.
“NLC’s expansion in both renewable and thermal projects, along with margin expansion prospects over the next 3–4 years, makes it an attractive play,” he noted.
The stock’s strong institutional holding and consistent rankings add to its long-term investment case.
New-age stocks: Momentum play, but valuations a concern
Turning to the new-age tech and platform companies, Joshi said festive-season demand has triggered a strong uptick for players such as Eternal and Swiggy, with food delivery and quick-commerce platforms benefiting from higher discretionary spending.
“We’re seeing significant growth in consumer activity during Navratri, and this momentum should continue through Diwali,” Joshi said. “Platform fee hikes and dark-store expansion are helping drive topline growth.”
However, he cautioned that valuations are stretched.
Eternal, though a stronger player, is “well above pivot levels” and may not offer an attractive entry point right now.
Swiggy, while relatively cheaper, still trades at high multiples and needs to prove sustained profitability over the next few quarters.
“For investors already holding these stocks, it makes sense to ride the momentum. But fresh entries may be better timed after some consolidation,” Joshi advised.
Bottom Line
Metals: Domestic strength offsets global uncertainty; JSW Steel, SAIL, and Hindalco remain top picks.
Diversified play: NLC India offers a unique long-term growth story in renewables and mining.
New-age tech: Eternal leads in growth, Swiggy offers relative value — but both remain expensive.
Joshi summed up his outlook saying, “…selective exposure across strong domestic themes — metals, renewables, and digital consumption — could deliver steady gains as India’s growth cycle strengthens into FY26.”
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