3 rare earth stocks down 70% from 52-week highs

January 22, 2026

Demand for rare earths in India is rising due to the adoption of electric vehicles (1.96 million EVs registered in FY25, up 17%) and the need for clean energy, such as wind turbines, which require powerful magnets.

According to a Reuters report, India has approved a permanent magnet manufacturing program worth Rs 72.8 billion (billion) in a bid to reduce dependence on imports for the elements crucial to sectors ranging from electric vehicles and aerospace to defense and renewable energy.

With rising demand, stocks related to the rare earths sector could potentially attract attention. Below are three such stocks to keep an eye on. It is important to note that some of these companies currently have only a small presence in the sector, and rare earths may not be their main area of ​​activity.

All of these companies have diversified businesses, as there is currently no publicly traded company focused solely on rare earths. We also highlighted companies that have plans to explore opportunities in this area, which are not currently present in rare earths.

#1 Owais metal and mineral processing

Owais Metal and Mineral Processing specializes in metals and minerals such as manganese oxide, ferrous manganese, charcoal, quartz plates and the recycling of rare earth minerals from slag using proprietary technology. These rare earth metals are intended for sectors such as electronics, semiconductors, defense 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.

Source: BSEShares of Owais Metal and Mineral Processing are down nearly 70% from their 52-week high.

On the financial front, the company reported revenues of Rs 1,230 mln for the first half of FY26, compared to Rs 1,050 mln year-on-year. Net profit for the period remained almost stable at Rs 250 million.

The company’s core product such as manganese oxide plays an important role in the fertilizer industry and is also used by manganese sulfate factories.

Processed Quartz is used in various sectors, including the hotel industry, the ferroalloy industry, the tile and ceramics sector, glass production, but also in the interior design and furniture industries.

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

They hope for better performance and an increase in sales in the coming year.

#2 NLC India

NLC’s core strength lies in lignite mining, integrated with thermal energy generation. It operates large lignite mines and power stations in Tamil Nadu (Neyveli) and Rajasthan (Barsingsar).

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

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

Source: BSEOn the financial front, the company reported revenues of Rs 41,784 mln for the second quarter of FY26, against Rs 36,573 mln year-on-year. Net profit for the period fell to Rs 7,247 mln versus Rs 9,824 mln YoY.

Looking ahead, the company signed an MOU with the Government of Gujarat on January 13, 2026, 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 will be developed through NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC India Limited and its dedicated 100% Renewable Energy division, established to lead NLCIL’s green energy growth and sustainability initiatives.

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

For more information, please refer to the NLC India fact sheet and latest quarterly results.

#3 Eco-recycling

Asset disposal, inventory management, packaging, reverse logistics, data destruction, asset recovery, recycling and more are all handled by Eco Recycling, a leading e-waste management company.

The company is preparing to commission a mineral recovery facility focused on PCBs, hard drives and lithium ion 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 crucial minerals.

Source: BSEShares of Eco Recycling are down almost 57% from their 52-week high.

On the financial front, the company posted revenues of Rs 144 million in the second quarter of FY26, compared to Rs 129 million year-on-year. Eco Recycling’s gross profit margins were 49.9% for the quarter ended September 2025, up from 71.6% year-over-year.

The company reported a net profit of Rs 56 mln against Rs 82 mln on a year-on-year basis.

In the second quarter, a new lithium-ion battery recycling facility with a capacity of 6,000 MTPA was commissioned in Vasai, increasing the total recycling capacity to 31,200 MTPA. The expansion was entirely financed by internal provisions.

The company plans to focus on strengthening value-added segments such as precious metals recovery, IT asset sales, data destruction, lamp recycling and renovation. Within the EPR framework, producers and companies are increasingly participating in these areas.

For more information, please consult the Eco Recycling fact sheet and the latest quarterly results.

Should You Consider Stocks Related to Rare Earth Space?

Most Indian companies often mentioned in this context are not pure rare earth players. Today’s stock stories are largely theme-driven. The revenues directly attributable to rare earths are insignificant. As a result, valuations can be well above fundamentals during thematic rallies.

Importantly, the sector itself is still in the momentum gathering phase in India. The policy intent is very good, driven by strategic concerns around dependence on China, electric car supply chains and indigenization of defense.

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

Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such. Read more about our referral services here…