Non Ferrous Metal Stocks

Non-ferrous metal stocks refer to investments in companies that produce or deal with metals other than iron and steel. These metals include aluminium, copper, zinc, lead and nickel, valued for their corrosion resistance and conductivity. Such stocks offer diverse opportunities in various industries.

The table below shows the non-ferrous metal stocks based on the highest market capitalisation and 1-year return.

Introduction To Non Ferrous Metal Stocks

Hindustan Zinc Ltd

The Market Cap of Hindustan Zinc Ltd is Rs. 205,709.66 crores. The stock’s monthly return is -19.84%. Its one-year return is 51.45%. The stock is 65.90% away from its 52-week high.

Hindustan Zinc Limited, an India-based company, is involved in mineral exploration, extraction, processing and manufacturing of metals and alloys. The company’s product range includes zinc, lead, silver, commercial power and alloys. Hindustan Zinc Limited operates in segments such as Zinc, Lead, Silver & others and Wind energy. 

The company runs five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulfuric acid plants, one silver refinery plant, six captive thermal power plants and four captive solar plants in Rajasthan. 

Vedanta Ltd

The Market Cap of Vedanta Ltd is Rs. 179,496.91 crores. The stock’s monthly return stands at 10.86%. Its one-year return is 93.37%. The stock is currently 10.21% away from its 52-week high.

Vedanta Limited, an Indian-based natural resources company, operates in various sectors including oil and gas, zinc, lead, silver, copper, iron ore, steel, nickel, aluminium, power and glass substrate. 

The company’s diverse product line includes aluminium ingots, primary foundry alloys, wire rods, billets, and rolled products that serve industries such as power, transportation, construction, packaging, renewable energy, automobile and aerospace.  

Hindalco Industries Ltd

The Market Cap of Hindalco Industries Ltd is Rs. 149,254.65 crores. The stock’s monthly return is 7.05%. Its one-year return is 39.52%. The stock is 7.22% away from its 52-week high.

Hindalco Industries Limited, an India-based leading metals company, is involved in the production and global distribution of aluminium, copper and related products. The company operates in four main segments: Novelis, Aluminium Upstream, Aluminium Downstream and Copper. 

Novelis focuses on manufacturing and selling aluminium sheet and light gauge products across North America, South America, Europe and Asia. The company’s upstream activities include bauxite and coal mining, alumina refining, metal production and power generation. Its downstream operations involve the production of value-added aluminium products like flat rolled items, extrusions, and foils. The Copper Segment encompasses the production of copper cathode, copper rods, precious metals and di-ammonium phosphate.  

Hindustan Copper Ltd

The Market Cap of Hindustan Copper Ltd is Rs. 30,156.64 crores. The stock’s monthly return is 7.04%. Its one-year return is 90.44%. The stock is 33.33% away from its 52-week high.

Hindustan Copper Limited is an Indian company that is involved in all aspects of copper production. The company’s main focus is on mining and processing copper ore. Its activities include exploring, mining, beneficiation, smelting and refining of copper. 

The company operates copper mines and concentrator plants in the Malanjkhand Copper Project in Madhya Pradesh, the Khetri Copper Complex in Rajasthan and the Indian Copper Complex at Ghatsila in Jharkhand. It also has smelting and refining facilities at the Indian Copper Complex and Gujarat Copper Project in Gujarat for producing copper cathode, which is further processed into copper wire rods at the Taloja Copper Project in Maharashtra.  

Gravita India Ltd

The Market Cap of Gravita India Ltd is Rs. 15,228.93 crores. The stock’s monthly return stands at 44.15%. Over the past year, it has delivered a return of 185.73%. Currently, the stock is 13.66% away from its 52-week high.

Gravita India Limited is involved in the processing of lead and aluminium, trading in lead products and aluminium scrap and executing turnkey lead recycling projects. The company is divided into segments such as Lead processing, Aluminum processing, Turn-key solutions and Plastic manufacturing. 

Within the Lead processing segment, the company conducts smelting of lead battery scrap and lead concentrate to create secondary lead metal, which is then refined into pure lead, specific lead alloy, lead oxides and various lead products such as lead sheets, lead powder and lead shot. 

Shivalik Bimetal Controls Ltd

The Market Cap of Shivalik Bimetal Controls Ltd is Rs. 3,231.60 crores. The stock’s monthly return is -7.61%. Its one-year return is 0.04%. The stock is 23.34% away from its 52-week high.

Shivalik Bimetal Controls Limited is a company based in India that specializes in joining materials using various techniques, including diffusion bonding/cladding, electron beam welding, continuous brazing and resistance welding, among others. 

It operates through the Process and Product Engineering segment and is involved in the manufacture and sale of thermostatic bimetal/tri-metal strips, components, spring-rolled stainless steels, electron beam welded shunt materials, cold-bonded bimetal strips and parts, snap-action discs, CNC-formed coils of bimetals/tri-metals and more, catering to a wide range of industries.  

Ram Ratna Wires Ltd

The Market Cap of Ram Ratna Wires Ltd is Rs. 2,829.20 crores. The stock’s monthly return is 50.39%. Its one-year return is 105.14%. The stock is currently 4.20% away from its 52-week high.

Ram Ratna Wires Limited, an India-based company, specializes in the production of winding wires, particularly enamelled copper wires. The company’s product range encompasses various gauges of winding wires, including superfine wires. 

Their portfolio includes enamelled copper wire and strips, enamelled aluminium wires and strips, submersible winding wires, fibreglass-covered copper and aluminium strips and paper-covered round wires. With manufacturing facilities in Silvassa Dadra and Nagar Haveli, the company operates across three segments.  

Pondy Oxides and Chemicals Ltd

The Market Cap of Pondy Oxides and Chemicals Ltd is Rs. 2,244.39 crores. The stock’s monthly return is 50.97%. Its one-year return is 381.12%. The stock is 3.26% away from its 52-week high.

Pondy Oxides and Chemicals Ltd (POCL) is one of India’s leading manufacturers of lead, lead alloys, and non-ferrous metals. Specializing in recycling and producing lead from used lead-acid batteries and other scrap materials, POCL also deals in copper, zinc and aluminium. 

The company serves industries like automotive, electronics and chemicals, providing high-quality metal products. As a key player in the non-ferrous metal sector, POCL focuses on sustainability through metal recycling, contributing to India’s growing industrial needs and promoting environmentally conscious practices in metal production.

Bharat Wire Ropes Ltd

The Market Cap of Bharat Wire Ropes Ltd is Rs. 1,905.62 crores. The stock’s monthly return is 18.36%. Its one-year return is 17.07%. The stock is 43.89% away from its 52-week high.

Bharat Wire Ropes Limited is a company that specializes in the manufacturing of steel wire ropes. The company’s primary focus is on producing and selling a variety of wire and wire rope products, such as wire ropes, slings, strands and steel wire. 

Their product range includes crane ropes for ports, large-diameter spiral strands for structures and bridges, elevator ropes, high-performance mining ropes, long-life-cycle fishing ropes, onshore and offshore ropes, swaged ropes and special ropes for the construction sector. Additionally, they manufacture wire rope slings for hoisting, harnessing and fastening purposes.  

Shera Energy Ltd

The Market Cap of Shera Energy Ltd is Rs. 398.80 crores. The stock’s monthly return is -3.51%. Its one-year return is 22.63%. The stock is 20.00% away from its 52-week high.

Shera Energy Ltd is an Indian company specializing in the production of non-ferrous metal products, including winding wires. It manufactures customized copper and brass wire rods, wires and tubes in various shapes and sizes, offering options such as bare, paper-covered and enamelled wires. 

The company’s product lineup includes brass rods, brass wires, copper tubes, aluminium tubes, brass tubes, copper bus bars/flats, aluminium bus bars/flats, paper-covered aluminium conductors, paper-covered copper conductors, bunched conductors and enamelled (SEM) aluminium and copper conductors.  

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What are Non Ferrous Metal Stocks?

Non-ferrous metal stocks represent shares of companies involved in the production and sale of metals that do not contain significant amounts of iron. These metals, such as aluminium, copper, lead, nickel and zinc are valued for their properties, including resistance to corrosion and lightweight characteristics.  

Investing in non-ferrous metal stocks can be advantageous due to the growing demand for these materials in various industries, including construction, electronics and renewable energy. The performance of these stocks often correlates with global economic trends, commodity prices, and technological advancements, making them an attractive option for investors seeking diversification.

Features of Best Non Ferrous Metal Stocks

The key features of the best non-ferrous metal stocks include strong demand in various industries. These factors collectively influence their growth potential and stability in the market.

1. Robust Financial Health: Companies with strong balance sheets, low debt levels, and consistent cash flow are more resilient to market fluctuations. Healthy financials not only signal stability but also indicate the potential for growth and shareholder returns through dividends and reinvestments.
2. Strategic Management: Effective management teams that can navigate market challenges, optimize operations, and capitalize on opportunities are essential. Their ability to make informed decisions regarding acquisitions, expansions and cost management directly impacts the company’s competitive advantage.
3. Sustainability Practices: Investors increasingly favour companies that prioritize sustainability and ethical practices. Non-ferrous metal companies adopting eco-friendly methods and responsible sourcing can enhance their brand reputation, attract more investors, and meet regulatory requirements while contributing to environmental goals.
4. Market Diversification: Companies that operate in multiple markets or produce a variety of metals can better withstand price volatility. Diversification reduces reliance on a single product or market, thereby stabilizing revenues and offering growth potential in different economic conditions.

Top Non Ferrous Metal Stocks in India Based on 6-Month Return

The table below shows the top non-ferrous metal stocks in India based on 6-month returns.

List Of Non Ferrous Metals Sector Stocks Based on 5-Year Net Profit Margin

The table below shows the list of non-ferrous metals sector stocks based on 5-year net profit margin.

Non Ferrous Metal Stocks Based on 1M Return

The table below shows the non-ferrous metal stocks based on a 1-month return.

High Dividend Yield Non Ferrous Metal Stocks

The table below shows the high dividend yield of non-ferrous metal stocks.

Historical Performance of Non Ferrous Metal Stocks

The table below shows the historical performance of non-ferrous metal stocks.

Factors to consider when investing in Non Ferrous Metal Stocks in India

The factors to consider when investing in non-ferrous metal stocks in India involve understanding various market and financial dynamics. It’s crucial to assess the global demand and supply trends for these metals, as they significantly influence pricing and stock performance.

1. Global Economic Conditions: The health of the global economy affects non-ferrous metal demand. Economic growth increases industrial activity, boosting demand for these metals, while recessions can lead to decreased demand and lower stock prices.
2. Commodity Prices: Non-ferrous metal stocks are highly sensitive to fluctuations in commodity prices. Regularly monitoring price trends of metals like copper, aluminium and zinc is essential to evaluate their impact on stock value and profitability.
3. Supply Chain Stability: Disruptions in the supply chain can impact metal production and availability. Evaluating the reliability of suppliers and logistics can provide insights into the potential risks and stability of the companies you’re considering investing in.
4. Regulatory Environment: Changes in environmental regulations and mining policies can affect non-ferrous metal companies. Understanding current and potential regulations helps anticipate costs and operational challenges that could impact stock performance.
5. Company Financial Health: Analyzing financial statements and performance metrics of companies in the sector is crucial. Assess profitability, debt levels and revenue trends to gauge the financial stability and growth prospects of the stocks you are interested in.

How to Invest in Non Ferrous Metal Stocks in India?

To invest in non-ferrous metal stocks in India, start by researching companies with strong fundamentals and market presence. Use a reliable broker like Alice Blue for trading. Monitor market trends and metal prices and consider diversification to manage risk. Evaluate financial statements and industry news to make informed decisions.

Impact of Government Policies on Non Ferrous Metal Stocks in India

Government policies significantly influence non-ferrous metal stocks in India. Policies such as import tariffs and export restrictions can affect metal prices and supply chains, impacting stock performance. For instance, higher tariffs on imports may boost domestic production but could also lead to increased costs for companies.

Subsidies or incentives for mining and manufacturing can enhance profitability for non-ferrous metal companies. Conversely, stringent environmental regulations may raise operational costs, potentially affecting stock values negatively.

Investors should closely monitor policy changes, as these can create both opportunities and risks in the non-ferrous metal sector.

How Non Ferrous Metal Stocks in India Perform in Economic Downturns?

The performance of these stocks often reflects broader economic trends, as demand for metals can decline when economic activity slows. Various factors, including construction and manufacturing output, significantly influence the market.   

Investors tend to closely monitor fluctuations in global metal prices and local consumption patterns, as these can directly impact stock values. Historically, while some non-ferrous metal companies may experience a downturn in their stock prices during recessions, others may demonstrate resilience or even growth based on their market positioning and operational efficiency.

Advantages of Investing in Non Ferrous Metal Stocks in India

The primary advantage of investing in non-ferrous metal stocks in India is their significant role in various industrial applications, driving robust demand. This sector benefits from infrastructure growth and technological advancements, ensuring sustained investment appeal.

1. Strong Demand in Electronics: Non-ferrous metals like copper and aluminium are crucial in electronics manufacturing. As technology advances, demand for these metals grows, boosting stock performance and offering steady returns.
2. Infrastructure Development: The Indian government’s focus on infrastructure projects creates consistent demand for non-ferrous metals. This sector benefits from construction, transportation and energy projects, leading to stable investment opportunities.
3. Diversification Benefits: Investing in non-ferrous metals provides portfolio diversification. These metals often have different market dynamics compared to other sectors, which can reduce risk and enhance overall investment stability.
4. Global Trade Opportunities: India’s non-ferrous metal industry is well-integrated into global trade networks. Export potential and international market trends positively impact stock performance, offering investors exposure to global economic growth.
5. Technological Innovations: Advances in technology enhance metal processing and recycling capabilities. Investments in companies leveraging new technologies can lead to higher efficiency and profitability, making them attractive to investors.

Risks of Investing in Non Ferrous Metal Stocks in India

The main risk of investing in non-ferrous metal stocks in India lies in the high volatility of metal prices. Market fluctuations can significantly impact stock values, leading to unpredictable returns and potential losses for investors.

1. Economic Slowdowns: Economic downturns can reduce demand for non-ferrous metals, affecting their prices and consequently, stock performance. Lower industrial activity during recessions can lead to decreased revenues and profitability for metal producers.
2. Regulatory Changes: Changes in government regulations and policies regarding mining and environmental standards can impact the operations and profitability of non-ferrous metal companies. Stricter regulations may lead to increased costs and operational challenges.
3. Supply Chain Disruptions: Non-ferrous metal companies often depend on complex global supply chains. Disruptions due to geopolitical issues, trade wars, or natural disasters can affect metal availability, leading to supply shortages and increased costs.
4. Currency Fluctuations: Since non-ferrous metals are traded globally, fluctuations in currency exchange rates can impact profits. A stronger domestic currency might reduce the competitiveness of Indian metal exports, affecting stock performance.
5. Technological Changes: Rapid advancements in technology can influence the demand for certain non-ferrous metals. Companies that cannot adapt to new technologies may face decreased demand for their products, impacting their stock values.

Non Ferrous Metal Stocks in India’s GDP Contribution

Non-ferrous metal stocks play a significant role in India’s economy, contributing notably to the GDP. These metals, including aluminium, copper, zinc and lead, are essential for various industrial applications, from automotive to construction. Their production and consumption reflect broader economic trends, with growth in infrastructure and manufacturing sectors boosting demand. 

The sector supports job creation and technological advancements, further enhancing its economic impact. As India continues to develop its infrastructure and industrial base, non-ferrous metals will remain crucial to sustaining economic growth and contributing to the GDP.

Who should invest in Non Ferrous Metal Stocks in India?

Investing in non-ferrous metal stocks in India can offer opportunities for diversification and growth, especially as the country’s industrial and infrastructure sectors expand. These stocks can appeal to various types of investors based on their financial goals and risk tolerance.

1. Long-Term Investors: Those seeking stable, long-term growth may find non-ferrous metals appealing due to their crucial role in infrastructure and technology, providing consistent demand and potential appreciation.
2. Diversification Seekers: Investors looking to diversify their portfolios beyond traditional sectors can benefit from non-ferrous metals, which have different economic drivers compared to equities and bonds.
3. Risk-Tolerant Investors: Those comfortable with market volatility and seeking higher returns might consider non-ferrous metal stocks, as they can be subject to price swings based on global demand and supply dynamics.
4. Industrial Sector Enthusiasts: Investors interested in sectors like construction, automotive, and electronics, where non-ferrous metals are essential, may see potential in stocks tied to these industries’ growth.
5. Speculators: Traders and speculators who capitalize on short-term price movements might find non-ferrous metal stocks appealing due to their price sensitivity to global events and market trends.

Best Non Ferrous Metal Stocks in India – FAQs

We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.