Comprehensive List of Listed Steel Companies in India

Last Updated on Nov 18, 2024 by Anjali Chourasiya

The iron and steel industry in India is vital for economic development, supporting various sectors like construction, infrastructure, and manufacturing. The country has emerged as a global leader in steel production, with significant contributions to global supply chains. For investors, understanding the list of manufacturing companies in India in the steel sector is essential to explore opportunities in metal stocks. In this article, let’s explore steel stocks, factors to consider before investing, benefits, risks, overview of the steel industry in India, government policies, and more.

What Are Steel Stocks?

Steel stocks represent shares of companies operating in the iron and steel industry in India. These stocks allow investors to participate in the growth of companies involved in steel production, distribution, and manufacturing. The steel share price reflects the performance of these companies in the steel market, influenced by factors like demand, input costs, and government policies. Steel stocks are also part of the broader nifty metal stocks, offering diverse investment opportunities.

All Steel Companies Listed in NSE

Note: The data is from 14th November 2024. To get this list of steel companies in India on the Tickertape Stock Screener, apply the below-mentioned filter.

• Sector > Materials > Iron & Steel

🚀 Pro Tip: Use Tickertape’s Portfolio Analysis to assess your investment portfolio’s diversification and performance.

Features of Steel Stocks

1. Cyclical Nature: Steel stocks tend to be cyclical, rising during economic expansion and falling during downturns. This behavior is linked to their dependence on industries like construction and infrastructure.
2. Global Influence: The performance of Indian steel stocks is often tied to global demand, with some players among the biggest steel companies in the world.
3. Material Cost Impact: Fluctuations in raw material prices, such as iron ore and coal, significantly affect profitability. Insights from the all steel price list today can offer a snapshot of price trends.

Factors to Consider Before Investing in Steel Companies

1. Market Size and Position: Investors may evaluate if the company is part of the top 100 steel companies in India or holds a significant share in the steel industry in India.
2. Production Capacity: Reviewing data from the largest steel plant in India and steel plants in India can help gauge production potential.
3. Government Influence: The Ministry of Steel plays a critical role through policies affecting tariffs, subsidies, and import controls, impacting company performance.
4. Industry Relevance: The steel company list often includes players involved in manufacturing and distribution across diverse industries.
5. Economic Linkage: Steel is integral to infrastructure development, making steel stocks in India closely tied to the country’s growth trajectory.

Advantages of Investing in Steel Stocks

• Infrastructure Growth Opportunities: Steel manufacturers benefit from infrastructure and urbanization projects.
• Consistent Demand: The steel manufacturing companies support industries like automotive, railways, and construction, ensuring steady growth.
• Portfolio Diversity: Adding metal stocks list to your portfolio can diversify investments, reducing risks.

Risks of Investing in Steel Stocks

• Economic Sensitivity: The steel stock market is highly sensitive to economic cycles, making it vulnerable to downturns.
• Raw Material Costs: Prices of materials like iron ore can fluctuate, impacting margins.
• Regulatory Risks: Policy changes by the Ministry of Steel or global trade dynamics may affect the sector.

Overview of the Indian steel industry

The Indian steel industry produces more than 100 MT of crude steel per year, surpassing Japan to become the world’s second-largest producer. Further, steel now contributes about 2% to India’s GDP and employs some 6 lakh people directly and 20 lakh people indirectly. If we look at the future of the industry, it is anticipated that the annual production of steel will exceed 300 mn tonnes by 2030-2031. For the same period, crude steel production is projected to reach 255 mn tonnes at 85% capacity utilisation achieving 230 mn tonnes of finished steel production, assuming a 10% yield loss or a 90% conversion ratio for the conversion of raw steel to finished steel. 

Government Policies and Their Impact on the Steel Industry

The steel industry in India has been significantly influenced by government policies aimed at enhancing production, ensuring sustainability, and fostering economic growth. With India being the second-largest steel producer globally, various initiatives have been introduced to support the industry’s growth trajectory, particularly through the National Steel Policy (NSP) and the Production Linked Incentive (PLI) Scheme.

Key Policies Impacting the Steel Industry

1. National Steel Policy (NSP) 2017:
   • The NSP aims to increase crude steel production to 300 million tonnes (MT) by 2030. As of FY24, India’s production reached approximately 143 MT, reflecting a substantial increase from previous years.
   • The policy focuses on enhancing per capita steel consumption to 160 kg by 2031, emphasizing the need for high-grade steel production for automotive and electrical applications.
2. Production Linked Incentive (PLI) Scheme:
   • Launched to promote specialty steel manufacturing in India, this scheme is expected to attract investments of around ₹29,500 crores, creating an additional capacity of 25 MT.
   • The PLI scheme aims to reduce reliance on imports and bolster domestic production capabilities, positioning Indian companies among the top steel companies in India.
3. Import and Export Regulations:
   • The government has implemented measures such as safeguard duties and anti-dumping duties to protect domestic producers from cheaper imports, particularly from countries like China and South Korea.
   • Recent policy reviews are assessing the impact of these regulations and considering adjustments to ensure competitiveness in the global market.

Impact on Steel Production and Companies

• Infrastructure Development: Government spending on infrastructure projects is projected to drive steel demand significantly, accounting for 25-30% of total consumption. This is expected to rise by 11% year-on-year in FY2024-2025.
• Top Steel Companies in India: Major players such as Tata Steel, JSW Steel, and Steel Authority of India Limited (SAIL) are positioned among the top ten companies in India, benefiting from these policies through increased production capacities and market share.
• Sustainability Initiatives: The industry is also under pressure to reduce greenhouse gas emissions, leading to a focus on green steel technologies. The government encourages the adoption of electric arc furnaces that utilize scrap materials, aligning with global sustainability goals.

Conclusion

Now if you are considering analysing or investing in steel stocks, how do you find steel stocks that suit your portfolio needs? Well, to invest in any stock, a thorough analysis is required. For this purpose, Tickertape provides you with comprehensive research, analysis, and investing tools. With Tickertape Stock Screener, you can list stocks based on your preferred criteria. There are over 200 filters for you to choose from, along with pre-built screens, which make your analysis faster.

Further, the Scorecard on every asset page helps you dive deeper into the stock and analyse the stock based on quantitative factors such as profitability, performance, entry and exit points, valuation, and growth and provides a sneak peek into the potential red flags in the stock. 

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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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