Indian carbon and stainless steel companies are exhibiting initial signs of a turnaround, according to a report by Jefferies released today, July 31, 2025. The brokerage firm is particularly bullish on Tata Steel and Jindal Stainless, citing improving global spreads, easing import pressures, and supportive government policies as key catalysts. While Asian conversion spreads have expanded by 14%, they remain 20% below historical averages, suggesting further room for growth. Jefferies forecasts that Indian domestic Hot-Rolled Coil (HRC) prices could rise to Rs 53,000/tonne from the current Rs 50,500/tonne if they align with imported steel. For Tata Steel, Jefferies reiterated a 'Buy' rating with a target price of Rs 200, projecting an EPS of Rs 10.6 for FY26 and Rs 15.0 for FY27. Jindal Stainless also received a 'Buy' rating with a target of Rs 800, with expected EBITDA/tonne increasing to $200 in FY26 and $215 in FY27. The report attributes positive shifts to new Bureau of Indian Standards (BIS) norms for utensil imports and a marginal rise in export volumes.