Down up to 70% from 52-week highs: 3 rare earth stocks to watch

Demand for rare earths in India is surging due to EV adoption (1.96 million EVs registered in FY25, up 17%) and clean energy needs like wind turbines, which require high-performance magnets.

According to a Reuters report, India has approved a Rs 72.8 billion (bn) rare earth permanent magnets manufacturing programme, in an effort to cut reliance on imports for the elements critical to sectors ranging from electric vehicles and aerospace to defence and renewable energy.

With rising demand, stocks linked to rare earth sector might gain attention. Below are three such stocks to watch. It is important to note that some of these companies currently have only a minor presence in the sector, and rare earth may not be their primary area of business.

All these companies have diversified operations, as there is no listed company exclusively focused on rare earth at this time. Also, we have highlighted firms that have plans to explore opportunities in this area, with no presence in rare earth currently.

#1 Owais Metal and Mineral Processing

Owais Metal and Mineral Processing specialises in metals and minerals such as manganese oxide, ferro manganese, wood charcoal, quartz slabs, and recycling rare earth minerals from slag using proprietary technology. These rare earth products serve industries like electronics, semiconductors, defence, and capacitors.

Owais Metal and Mineral Processing had launched an IPO in February 2024 at a price of Rs 87. The stock is listed in the SME segment of the NSE.

The stock of Owais Metal and Mineral Processing is down almost 70% from its 52-week highs.

On the financial front, the company reported revenues of Rs 1,230 m for H1 FY26, against Rs 1,050 m YoY. The net profits for the period were almost flat at Rs 250 m.

The company’s core product, such as manganese oxide, play a significant role in the fertilizer industry and are also utilized by manganese sulphate plants.

Processed Quartz finds application across various sectors, including the hotel industry, ferroalloy industry, tiles and ceramics sector, glass manufacturing, as well as interior design and furniture industries.

As per the annual report, the management believes that with the overall situation showing signs of improvement, the directors remain optimistic about the company’s business prospects.

They are hopeful for better performance and an increase in revenue in the coming year.

#2 NLC India

NLC’s core strength lies in lignite mining integrated with thermal power generation. It operates large lignite mines and pit-head power plants in Tamil Nadu (Neyveli) and Rajasthan (Barsingsar).

According to PTI reports, the company has begun preliminary talks for lithium blocks in Mali, West Africa and for copper and cobalt mines in the Republic of the Congo, its CMD Prasanna Kumar Motupalli said.

In an interview to PTI, Motupalli said that both mines and coal ministries have very clearly communicated to the Navratna firm to “aggressively” explore and mine both critical mineral blocks and rare earth elements.

On the financial front, the company reported revenues of Rs 41,784 m for Q2 FY26, against Rs 36,573 m YoY. The net profit for the period dropped to Rs 7,247 m vs Rs 9,824 m YoY.

Moving ahead, on 13 January 2026, the company signed an MOU with the government of Gujarat for the development of large-scale Renewable Energy (RE) projects in the State of Gujarat, including solar, wind, hybrid and battery energy storage projects.

The proposed projects shall be developed through NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC India Limited and its dedicated 100% Renewable Energy arm, established to spearhead NLCIL’s green energy growth and sustainability initiatives.

NLC India plans to achieve 10 GW of renewable energy capacity by the year 2030, which underscores the company’s commitment to sustainable development, energy security, and decarbonisation.

#3 Eco Recycling

Asset removal, inventory control, packing, reverse logistics, data destruction, asset recovery, recycling, and more are all handled by Eco Recycling, a prominent e-waste management company.

The company is preparing to commission a mineral recovery facility focused on PCBs, hard drives, and lithiumion batteries. This will help recover valuable metals such as cobalt, nickel, and manganese for domestic industries, reducing import dependence and contributing to India’s self-reliance in critical minerals.

The stock of Eco Recycling is down almost 57% from its 52-week highs.

On the financial front, the company saw revenues of Rs 144 m in Q2 FY26 vs Rs 129 m YoY. The gross profit margins of Eco Recycling were 49.9% for the quarter ending September 2025, against 71.6% YoY.

The company reported a net profit of Rs 56 m against Rs 82 m YoY.

In the second quarter, a new 6,000 MTPA lithium-ion battery recycling facility at Vasai was commissioned, increasing the overall recycling capacity to 31,200 MTPA. The expansion was entirely financed by internal accruals.

The company plans to concentrate on bolstering value-added segments like precious metal recovery, IT asset disposition, data destruction, lamp recycling, and refurbishment. Under the EPR framework, producers and businesses are increasingly participating in these areas.

Should You Consider Stocks Associated with the Rare Earth Space?

Most Indian companies often mentioned in this space are not pure-play rare earth players. The current stock narratives are largely theme-driven. Revenues directly attributable to rare earths are insignificant. As a result, valuations can run far ahead of fundamentals during thematic rallies.

Importantly, the industry itself is still in the “momentum-gathering” phase in India. Policy intent is very good — driven by strategic concerns around China dependence, EV supply chains, and defence indigenisation.

Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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