These 9 steel stocks rallied over 50% in 2017 so far

Tata Steel, Jindal Stainless, Kalyani Steel, Jindal Saw and JSPL have rallied more than 50%

Shares of steel companies are on a roll with nine companies include Tata Steel, Jindal Stainless Hisar, Welspun Corp, Kalyani Steel, Jindal Saw, Maharashtra Seamless and APL Apollo having rallied over 50% so far in the calendar year 2017.

Jindal Steel & Power (JSPL) and Jindal Stainless have seen their market value more than doubled on improved financial performance.

The financial results of eight of the companies that have been announced as of now, have posted a combined net profit of Rs 9 crore in last six months (January-June, 2017). These companies had posted an aggregate net loss of Rs 8,015 crore during the same period last year. APL Apollo yet to announce its April-June quarter results.

As per media reports, flat steel producers increased the prices up to Rs 3, 000 per tonne effective 1st August 2017. The increase in prices can be attributed to two reasons, expected improvement in domestic demand and growth in international steel prices.

"Steel demand is improving with increasing public sector spending, as reflected in increased activity in sectors like roads, power transmission and distribution, solar energy, earthmoving equipment, pre-engineered buildings, water and gas pipelines. Although, sluggish private capital expenditure remains a concern," steel major JSW Steel said in an analyst presentation available on the BSE website.

CARE Ratings believes that if the increase in domestic steel prices is sustained and there is no roll back of this increase in prices in the coming months, it will indicate the revival of domestic steel consumption in the country.

“We expect steel prices in China to remain stable in the near term backed by Chinese government’s aim to reduce over capacity and to protect the air quality in the country. This, in turn, will support the steel prices in India,” the rating agency said in recent report.

Company	30/12/2016	LTP	% chg
Jindal Stainless	37.75	83.20	120.4
Jindal Steel	69.10	139.35	101.7
Jindal Stainless Hisar	89.85	172.55	92.0
Mah. Seamless	240.10	410.00	70.8
Jindal Saw	55.20	93.05	68.6
APL Apollo	913.55	1527.30	67.2
Welspun Corp	75.30	122.85	63.1
Tata Steel	391.10	631.00	61.3
Kalyani Steels	275.55	422.10	53.2
S&P BSE Sensex	26626.46	31755.27	19.3
S&P BSE Metal Index	10109.34	12931.97	27.9
LTP : Last traded price on BSE in Rs at 11:41 am