“Overall, metals we have a positive view. What we believe is that because of geopolitical concerns, obviously the precious metals, which are kind of a risk-off trade, are continuously seeing a rise. But what we also need to see is that globally, some of the growth for industrial metals like copper, zinc and aluminium is also on the rise,” Khemka said.
He added that supply curtailments in certain regions, coupled with improving demand from China, are providing a supportive backdrop for base metals. “Some of the supplies have been curtailed, while demand from China is also looking strong. To top it all, the safeguard duties, especially on the steel and ferrous side that India has put in, also improve pricing as well as earnings visibility for calendar year 2026,” he noted.
On the domestic steel sector, Khemka said India is well-positioned to benefit from shifting global trade dynamics. “Overall, what we see is that, especially if you look at the ferrous side, we expect a 7% volume CAGR, with India becoming the fastest-growing steel market. There is huge growth ahead, given that Chinese exports are peaking out, plus there is rising protectionism there,” he said.
Excluding precious metals, Khemka believes industrial metals such as copper, zinc and aluminium could continue to see upside in the current year, followed by further gains in ferrous metals.
Meanwhile, on the retail front, Khemka struck a more cautious note on Trent, despite the stock’s strong long-term credentials. The ET Now anchor pointed out that the stock continues to trade at around 80 times trailing 12-month earnings, raising questions about valuation comfort.
“The bigger challenge for Trent has been the slower growth that they are reporting, and the retail business is yet to pick up, given that the valuations are still factoring in strong, high growth,” Khemka said.He acknowledged the company’s execution strength but flagged near-term macro pressures. “In terms of capabilities, we have seen the management and the business being pretty strong. However, what we are seeing are the current macro headwinds, especially for the retail business, which may take some more time to improve,” he said.
For investors, Khemka suggested a wait-and-watch approach. “In the interim, what we believe is that one should remain sideways. If you are already holding, maybe you can hold, but wait for at least some improvement in numbers before I would suggest fresh buying in a company like Trent,” he added.
