Jindal Steel shares are trading higher than the 50 day, 100 day, 150 day and 200 day but lower than the 5 day, 10 day, 20 day and 30 day moving averages. 
Special 
Jindal Steel shares are trading higher than the 50 day, 100 day, 150 day and 200 day but lower than the 5 day, 10 day, 20 day and 30 day moving averages. Shares of multibagger Jindal Steel & Power Ltd (JSPL) have surged 60% from their 52-week low hit last year. The metal stock fell to a yearly low of Rs 424.60 on October 12, 2022 and climbed to a 52-week high of Rs 722.15 on September 15 this year. On Wednesday, JSPL stock ended 2.86 per cent lower at Rs 678.60 against the previous close of Rs 698.55 on BSE. Market cap of Jindal Steel fell to Rs 69,223 crore. JSPL stock has gained 14.31 per cent since the beginning of this year and risen 54.31 per cent in one year.
The stock has a one-year beta of 1.4, indicating very high volatility during the period. A total of 0.96 lakh shares of the firm changed hands amounting to a turnover of Rs 6.53 crore on BSE.
JSPL shares have delivered multibagger returns of 257% in the last three years.
In terms of technicals, the relative strength index (RSI) of Jindal Steel stands at 46.8, signaling the stock is neither oversold nor overbought. Jindal Steel stock is trading higher than the 50 day, 100 day, 150 day and 200 day but lower than the 5 day, 10 day, 20 day and 30 day moving averages.
Motilal Oswal has a target price of Rs 790 on the stock.
"The company has followed a prudent deleveraging policy to strengthen its balance sheet. With net debt of Rs 6,800 crore in 1QFY24 and a net debt-to-EBITDA ratio at a comfortable level of 0.75x, JSPL has one of the strongest balance sheets among the domestic manufacturers. The stock trades at 4.8x FY25E EV/EBITDA. We reiterate BUY on the stock with a target price of Rs 790 (5.5x FY25E EV/EBITDA)," said the brokerage.
ICICI Securities has a buy call on the JSPL stock with a target of Rs 810.
Antique Broking has maintained a target price of Rs 804 per share on the JSPL stock.
"Higher crude steel capacity (4.25 mtpa blast furnace of Angul phase 2 is expected by2QFY25), pellet capacity addition (6 mtpa added in 1QFY24 and an additional 6 mtpa byFY25 end), slurry pipeline, and expanded value-added portfolio (5.5 mtpa hot strip mill byFY24 end) will aid FY24 and FY25 margins. Lower coal costs post the commencement ofcaptive coal mining would reduce costs. We like the company’s volume growth prospects,structural cost reduction, margin accretive projects, prudent financial acumen and maintain a BUY rating with a target price of Rs 804 per share based on 6x FY25E EV/EBITDA multiple basis firm profit outlook and comfortable leverage," said the brokerage.
Net profit in Q1 slipped 15% led by a rise in expenses and fall in steel prices. The earnings were announced after market hours on August 11.
Consolidated profit fell to Rs 1692 crore in the three months ended June 30 from Rs 1990 crore a year earlier.
Revenue slipped to Rs 12,643 crore in Q1 of this fiscal against Rs 13,069 crore in the June quarter of last fiscal. Operating profit or EBITDA slipped to Rs 2628 crore in the June 2023 quarter against Rs 3438 crore in Q1 the previous fiscal.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Copyright©2025 Living Media India Limited. For reprint rights: Syndications Today
