HSBC Initiates Coverage on India’s Metals & Mining Sector, Sets Bullish Price Targets for Tata Steel, Hindalco, Coal India & More

HSBC has launched its first comprehensive coverage on India’s metals and mining sector, putting forward a generally optimistic outlook and assigning target prices that suggest strong medium-term growth potential for several key players. NDTV Profit+2Moneycontrol Hindi+2

According to HSBC’s research note, the brokerage sees a “sweet spot” in the aluminium space and forecasts a multi-year growth trajectory for the domestic steel industry. NDTV Profit+1 Despite acknowledging that valuations in India’s metals space are higher compared to global peers, HSBC argues the premium is justified given robust demand dynamics and favorable policy tailwinds. NDTV Profit+1

Here are some of the key calls and target prices from HSBC:

HSBC’s bullishness on Hindalco is grounded in the expectation that its U.S. subsidiary, Novelis, will begin to deliver more stable earnings starting around FY 2027, helping to offset past volatility. Moneycontrol Hindi

On the steel side, HSBC believes Tata Steel is well-positioned to benefit from improving underlying demand and a gradual reduction in losses in its European business. Moneycontrol Hindi+1

In contrast, HSBC is cautious on NMDC, assigning a “reduce” rating and pointing to limited upside given its target price of ₹59 per share. NDTV Profit

The brokerage’s mixed outlook for mining names reflects a balancing act: while there is long-term growth opportunity, it also sees risks from commodity cycles and regulatory headwinds.