Friday, June 06, 2025 | 09:47 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Investors fear big decline in metal companies' margins and profits

The metal sector also faces headwinds from an investment slowdown in China that accounts for more than half the global metal demand

Investors fear big decline in metal companies’ margins and profits
premium

By comparison, the companies in the BSE Metal Index reported a combined net profit (adjusted for exceptional gains and losses) of Rs 1.43 trillion in 2021-22 (FY22) — up 136 per cent year-on-year, from Rs 60,454 crore a year ago

Krishna Kant Mumbai
Investor fears of an earnings growth in the metals and mining space is at its worst in a decade, leading to a sharp fall in the valuation of stocks in the sector.

The S&P BSE Metal Index is currently trading at a trailing price-to-earnings (P/E) multiple of 4.5x — the lowest in over a decade. The combined market capitalisation (m-cap) of the 10 stocks that are part of the BSE Metal index is down 30 per cent in the past three months as investors fear a big decline in metal companies’ margins and profits in 2022-23 (FY23) due to a