Shares of Jindal Stainless have delivered 2051% returns to investors in the last five years. The stock of the steel producing major, which closed at Rs 38 on September 26, 2019 hit an intraday high of Rs 797 in the current session. In comparison, Sensex has risen 120% in five years. The metal sector stock rose nearly 2% in the afternoon session today after brokerage JM Financial initiated coverage on the stock. The multibagger metal stock rose 1.88% to Rs 796.80 on BSE. Market cap of the firm rose to Rs 65,183 crore. A total of 0.23 lakh shares changed hands amounting to a turnover of Rs 1.84 crore on BSE.
The multibagger stock hit a 52 week low of Rs 429 on November 1, 2023 and rose to a 52-week high of Rs 848 July 9, 2024. The stock of the stainless steel maker has gained 405% in three years and risen 531% in two years.
In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 59.9, signaling it's trading neither in the overbought nor in the oversold zone. Jindal Stainless shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Jindal Stainless stock has a one-year beta of 1, indicating average volatility during the period.
JM Financial has assigned a buy call to the stock with a price target of Rs 910 per share.
"Jindal Stainless recently announced a three-pronged strategy for capacity expansion through a capex of INR55 bn. JSL is one of the least levered compared to its steel counterparts with NetDebt/EBITDA of less than 1. Jindal Stainless' Net debt is expected to increase from Rs 36 bn in FY24 to Rs INR56 bn in FY25. We anticipate a Revenue/ EBITDA/ PAT CAGR of 16%/ 25%/ 33 over FY24-26E given capacity expansion and better product mix We bake in capex of Rs 55 bn and Rs 30 bn for FY25/26E. Our target price of Rs 910/share is based on 10x EV/EBITDA FY26E implying an upside of 15%. We initiate coverage with a BUY rating," said JM Financial.
Brokerage Prabhudas Lilladher has an accumulate call on Jindal Stainless with a target price of Rs 836.
"We upgrade the stock to ‘Accumulate’ from ‘Reduce’ rating with revised TP of Rs 836 (earlier Rs 712) valuing at 9 times EV of Mar’26E EBITDA from 7x earlier. Higher imports and any deterioration in developed economies remain key risks to our estimates," said Prabhudas Lilladher.
ICICI Securities has a buy call on the Jindal Stainless stock with a target of Rs 955. The brokerage cited the below key points from the investors meeting behind its bullish stance.
“1) Recently announced capex of INR 54bn will likely fuel volume growth of 15-20% YoY through to FY29. 2) Collaboration and not competition with the largest stainless player in the world to likely help improve the company’s positioning. 3) Further expansion plans likely to be in India with capex paced in-line with demand and cash flows. 4) Focus on enhancing value-added products at Hisar plant and increasing volume at Jajpur plant. Going ahead, we believe that the recently announced capex and collaboration with Tsingshan is likely to benefit the company in the medium term. Maintain BUY on the JSL stock with an unchanged target price of Rs 955 on 18x FY26E EPS,” said the brokerage.