Shares of Jindal Stainless Ltd rose over 3% in early deals on Tuesday after brokerage Nuvama upgraded the metal stock to 'buy' from 'hold'. The brokerage also raised its price target to Rs 836 against the earlier Rs 756). The multibagger stock rose 3.41% to Rs 628.30 today. Jindal Stainless stock has delivered 1342% returns to investors in the last five years. Market cap of the firm rose to Rs 51,728 crore. A total of 3,579 shares changed hands amounting to a turnover of Rs 22.20 lakh on BSE.
The multibagger stock hit a 52 week low of Rs 513.60 on January 24, 2024 and rose to a 52-week high of Rs 848 on July 9, 2024. The stock of the stainless steel maker has gained 206% in three years and risen 166% in two years.
In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 22.5, signaling it's trading neither in the oversold zone. Jindal Stainless shares are trading lower than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
Jindal Stainless stock has a one-year beta of 1.1, indicating high volatility during the period.
Brokerage Nuvama said, "The share price of Jindal Stainless (JSL) plunged 20% last month amid weaker-than-expected volume, profitability and general weakness in the market. We believe earnings have bottomed out in Q3FY25."
"We are cutting FY25E/26E EBITDA by 7% each to factor in lower volume and profitability amid temporarily weak export demand that is likely to pick up in FY26. We rollover to FY27, valuing the stock at 8.5x FY27E EV/EBITDA and arrive at a TP of INR836 (earlier INR756). After being sideways for a year, we upgrade the stock to ‘BUY’ from ‘HOLD’. We believe the long-term structural story is intact while the near-term correction in the stock should be taken as a buying opportunity," added Nuvama.
In the second quarter of the current fiscal, the metal firm reported a 21% fall in net profit to Rs 611.31 crore against Rs 774.33 crore in the year ago period. Revenue from operations slipped marginally by 0.20 per cent to Rs 9,776.83 crore in Q2 FY25 compared to Rs 9,797.04 crore in the year-ago period.