Shares of Jindal Steel & Power Ltd (JSPL) have zoomed over 900% from their Covid low of April 2020. JSPL stock fell to Rs 62.10 on April 3, 2020 after the Modi government announced the coronavirus lockdown to contain the rising number of Covid-19 cases. Since then, Jindal Steel shares have recovered 951% from Covid lows to Rs 653 in the current trading session. In the last three years, the JSPL stock has rallied 192%. The stock has gained just 10% in 2023 but risen 71% in a year.
The large cap stock was trading on a flat note at Rs 654.30 in the current session against the previous close of Rs 653.50 on BSE. Market cap of Jindal Steel slipped to Rs 66,744 crore. A total of 0.24 lakh shares of the firm changed hands amounting to a turnover of Rs 1.54 crore on BSE.
ALSO READ: Suzlon Energy shares rise for three straight sessions; how strong is the uptrend?
In terms of technicals, the relative strength index (RSI) of Jindal Steel stands at 52.6, signaling the stock is neither oversold nor overbought. The stock has a one-year beta of 1.5, indicating very high volatility during the period. Jindal Steel stock is trading higher than the 20 day, 50 day, 100 day and 200 day but lower than the 5 day and 10 day moving averages.
Here’s a look at what analysts said on the outlook of the Jindal Steel stock.
Rohan Shah - Technical Analyst, Religare Broking said, "The metal index has been inching gradually higher from the last 5 months and is currently trading around record highs. Jindal Steel is trading in sync with the index. The stock has been gradually inching higher from the last few months, where the price rallied from Rs 500 to Rs 700 levels. However, after hitting a new record high, it took a breather and retraced back towards its previous swing low on relatively lower volumes. It has rebounded of late, finding support around its previous swing low and reclaimed its short-term average .i.e. 20 DEMA, which indicates a bullish tone to continue. We anticipate Jindal Steel to scale higher towards Rs 700 levels. Traders should maintain stop loss below Rs 640 for long trades."
Deven Mehata, Equity Research Analyst, Choice Broking said, "Jindal Steel has formed a bullish candle on daily chart. Currently, the stock is trading at Rs 655 levels. The stock has successfully surpassed the important level of Rs 652 which was a prior resistance and also 20 Day EMA. A small resistance is placed around Rs 675 levels. Once stock closes above the mentioned levels, it can move towards Rs 700 levels and above. Jindal Steel has a strong support at around Rs 640 levels. The RSI indicator is trading around 52 levels indicating strength. On daily charts, the stock has taken a support of the lower band of Bollinger band and has approached the middle band. Once stock sustains above the middle band, the expansion of the band will pull the price of the stock towards the upper band and hence can lead towards the levels of Rs 700.
Based on the above mentioned technical analysis we can witness support for Jindal Steel at Rs 640 and the stock can approach the Rs 700 levels in short to medium term."
Abhijeet from Tips2trades said, "Jindal Steel looks slightly bearish on the daily charts with next resistance at Rs 662.3. A daily close above this resistance could lead to target of Rs 720 in the near term. Support will be at Rs 633."
Aditya Gaggar, Director of Progressive Shares said, “Jindal Steel and Power is in the primary uptrend with a higher top higher bottom formation and in the month of July 2023, the stock has given a breakout from the Flag and Pole formation (Monthly Time-frame). The stock moved in tandem with the market correction and has almost completed its pullback move to resume its uptrend. A reading of 30 in the trend-following indicator ADX indicates the presence of a strong uptrend. As per Flag and Pole formation, the target is Rs 825.”
Gaurav Bissa, VP, InCred Equities said, "Jindal Steel was seen consolidating in a range for a year before breaking out above Rs 620 levels on the weekly charts. The stock has witnessed some profit booking in the last few days and is approaching breakout retest levels at Rs 620. The stock is expected to witness some stability around Rs 620 which can push the stock back towards Rs 680-685 levels. RSI is currently trading around 60 and is expected to sustain above 45 levels which can ensure declines in the stock price are limited and overall trend remains strong."
Kotak Institutional Equities (KIE) has raised target price of Jindal Steel to Rs 740 from Rs 580.
“A sector-leading growth profile along with the strongest balance sheet makes a strong case for re-rating,” the brokerage firm said.
Kotak sees the next 12 months as a transformational period for JSPL as various projects are lined up for commissioning. JSPL’s capacity would increase by 65 per cent in two phases while higher backward and forward integration over FY2024-26E would structurally lift its margin profile.
"We estimate EBITDA and EPS CAGR of 19 per cent and 17 per cent and 33 per cent and 27 per cent over the next 3 and 5 years, respectively. A large part of growth capex should be met by internal accruals with net debt/EBITDA to peak at 0.8 times in FY2025E. A sector-leading growth profile along with the strongest balance sheet makes a strong case for re-rating," it said.