Metal stocks rally despite decline in corporate earnings in Sept quarter

Bright future for sector could be a reason, say experts

The sharp reversal in the net profit of metal and mining companies in the second quarter of the 2022-23 financial year (Q2FY23) is yet to show in the stock price and market capitalisation of these companies.

The combined net profit of 32 listed metal and mining firms in the Business Standard sample is down 82 per cent year-on-year (YoY) in Q2FY23 and 72 per cent quarter-on-quarter (QoQ). But the share price of most of the stocks in the sector has either rallied or is unchanged during the period. As a result, the combined market capitalisation of 32 metals and mining