New Delhi, Oct. 27 -- Indian steel stocks could be poised for a sustained upcycle as tightening supply, resilient demand and protectionist trade policies support prices, according to Aditya Birla Capital. The brokerage has initiated coverage of JSW Steel and Steel Authority of India (SAIL), assigning Buy ratings to both, citing capacity expansion and margin recovery, respectively. It has assigned Add ratings to Tata Steel and Jindal Steeland initiated coverage of ArcelorMittal with a Positive view.

JSW Steel is the brokerage's preferred long-term compounder, backed by consistent capacity additions, while SAIL offers a margin recovery opportunity.

Aditya Birla Capital has set a target price of Rs.1,425 for JSW Steel, implying an 18% upsi...