Global brokerage firm Jefferies has issued five ‘Buy’ recommendations across the steel and mining sector, projecting upside potential of up to 38 percent based on improving demand outlook, favourable pricing trends, and company-specific strengths. The positive stance reflects Jefferies’ confidence in the medium- to long-term prospects of metal producers amid infrastructure spending, energy transition needs, and disciplined capacity additions.
According to the brokerage, select steel companies are well placed to benefit from steady domestic demand, improving margins, and stronger balance sheets. Jefferies highlighted that cost efficiencies, access to captive raw materials, and a focus on value-added products are likely to support profitability despite volatility in global steel prices.
In the mining space, Jefferies pointed to robust fundamentals driven by sustained demand for key commodities used in construction, manufacturing, and clean energy applications. Companies with diversified resource portfolios, long mine life, and strong execution capabilities are expected to deliver consistent earnings growth. The brokerage also noted that stable regulatory environments and prudent capital allocation are enhancing investor confidence in select mining stocks.
Jefferies believes that current valuations in parts of the steel and mining sector remain attractive, especially when viewed against long-term earnings visibility and cash flow generation. The brokerage added that ongoing infrastructure development, both domestically and globally, could act as a demand catalyst, while supply-side discipline may help limit sharp price corrections.
The five ‘Buy’ recommendations are seen as an indication of selective optimism, with Jefferies advising investors to focus on fundamentally strong companies rather than taking a broad-based sectoral approach. Market participants will closely watch execution, pricing trends, and policy developments that could influence the sector’s performance going forward.