Vedanta vs Tata Steel vs NMDC: Which metal stock to buy for long-term?

Stocks to buy for the long term: After losing for three straight sessions, the Indian stock market witnessed some buying interest in the Friday session. The Nifty 50 index finished 104 points higher at 24,854; the BSE Sensex ended 218 points up at 81,224, whereas the Bank Nifty index gained 805 points and closed at 52,094. 

According to stock market experts, this rise in the Indian stock market would be considered a relief rally untill the Nifty 520 index breaches the immediate hurdle placed at the 20,050 mark on a closing basis. They said the 50-stock index may try to retest its recent lows and touch 24,350 to 24,300 levels. However, they maintained that the current sideways to negative trends on Dalal Street could be an excellent opportunity to add metal stocks to one's portfolio.

Metal stocks to buy for long term

Speaking on the outlook of the Indian stock market, Mahesh M Ojha, AVP—Research at Hensex Securities, said, "Friday's rally is just a relief rally until the Nifty 50 index closes above the 25,050 mark. However, it would indicate an improvement from negative to cautious trends. A bull trend can be assumed only after the breakage of the 25,300 hurdle. On the lower side, the frontline index may try to retest its recent lows and touch the 24,3050 to 24,300 mark."

Advising long-term investors to go for bottom fishing, Anshul Jain, Head of Research at Lakshmi Shree Investment and Securities, said, "In this falling market, buying stocks available at attractive valuations can be a good investment strategy for long-term investors because the market trend is expected to remain sideways to negative until the US Presidential election results are out. I would suggest long-term investors look at metal stocks as these stocks are expected to generate alpha return in the long term."

Regarding metal stocks to buy in the long term, Mahesh M Ojha of Hensex Securities said that frontline stocks Vedanta, Tata Steel, and NMDC could be looked at while going for metal stocks in the long term.

Vedanta vs Tata Steel vs NMDC

On which of these three stocks are looking better placed for higher returns, Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, “When considering Vedanta, Tata Steel, and NMDC for long-term investment, each offers unique advantages. Vedanta has a diversified portfolio across metals, oil, and gas, but its higher debt levels and exposure to global commodity prices add risk. Tata Steel is a leader in the steel industry with a strong global presence, and its recent focus on deleveraging and sustainability makes it a solid long-term option. However, it is sensitive to cyclical trends.”

"NMDC, primarily focused on iron ore mining, has a robust balance sheet with lower debt and offers stability due to its public-sector backing. Still, its growth may be more limited compared to the others. Tata Steel could be more appealing for long-term investors due to its global positioning and balanced growth strategy, while NMDC provides a safer, lower-risk option. Vedanta is better suited for those with a higher risk appetite seeking exposure to a broader commodity mix," said Gour.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.