Rs 40 to Rs 368: This metal stock turned into a multibagger in three years, hit record high today

Shares of Jindal Stainless Ltd have delivered multibagger returns in the last three years. The stock of the metal producing firm, which closed at Rs 40.3 on July 3, 2020 hit a record high of Rs 368.55 in the current session (July 6, 2023), delivering 814% returns during the period. In comparison, Sensex has risen 80% in three years.

In the current session, Jindal Stainless shares of the stainless steel maker rose over 3% to the record high of Rs 368.55 against the previous close of Rs 353.60 on BSE. They fell to a 52-week low of Rs 97.50 on July 6 last year. The stock of the stainless steel maker has gained 45% this year and risen 267% in the last one year. Total 0.24 lakh shares of the firm changed hands amounting to a turnover of Rs 85.35 lakh on BSE. Market cap of Jindal Stainless rose to Rs 30,195 crore.

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In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 74.7, signaling it's trading in the overbought zone. Jindal Stainless stock has a one-year beta of 0.8, indicating very low volatility during the period. Jindal Stainless shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Here’s a look at what analysts said on the outlook of the stock.

Abhijeet from Tips 2trades said, "Jindal Stainless is bullish but also overbought on the daily charts with next resistance at Rs 370. A daily close below the support of Rs 341 could lead to targets of Rs 316-300 in the near term."

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Gaurav Bissa, VP, InCred Equities said, “JSL has been one of the strongest and most consistent metal names for the last few quarters. The stock retested five-year breakout followed by fresh upside. The stock has recently made a fresh swing high breakout with strong follow up buying candles seen on the daily charts. On point and figure charts, the stock has triggered a follow through breakout on 0.25x3 daily charts with cluster targets placed around Rs 380 levels. Fresh entry is not advised at the current levels whereas those who are already holding the stock can use trailing stop loss of Rs 355 for a move towards Rs 380-385."

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Jindal Stainless reported a 20% fall in net profit to Rs 716.29 crore in the March 2023 quarter. However, on a quarter-on-quarter basis, the firm reported a 40% rise in profit from Rs 512 crore in the December quarter. The metal firm’s board approved a proposal to raise Rs 5,000 crore via issue of debt securities. On May 18, Jindal Stainless shares gained 8.42% to Rs 303.95 against the previous close of Rs 280.35 on BSE.

The New Delhi-based company's revenue from operations climbed to Rs 9765.08 crore in Q4 from Rs 9725.91 crore a year earlier. Sales zoomed 9% to Rs 35,697 crore in the last fiscal against net profit of Rs 32732 crore in the previous fiscal. However, profit fell 33% to Rs 2083.83 crore in FY23 against Rs 3109.39 crore in the previous fiscal.

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