Jindal Stainless shares fall 5% as Nuvama trims price target 

Jindal Stainless Ltd shares fell over 5% following brokerage Nuvama's reduction of the target price to Rs 723 from the earlier Rs 836, maintaining a 'buy' rating. Current challenges include subdued export demand and increased imports, impacting profitability. Nuvama said long-term growth prospects remain intact.

Jindal Stainless shares saw a 5.15% fall to Rs 593.40 on BSE. Market cap of the firm fell to Rs 49,088.43 crore.

A total of 0.97 lakh shares changed hands amounting to a turnover of Rs 5.83 crore on BSE.

The metal stock fell to a 52 week low of Rs 568.70 on February 17, 2025. The stock of the stainless steel maker has fallen 14.42% this year and lost 14% in the last one year.

Jindal Stainless stock has a one-year beta of 1.1, indicating high volatility during the period.

In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 48.3, signaling it's trading neither in the overbought nor in the oversold zone. Jindal Stainless shares are trading lower than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

This adjustment reflects concerns over the company's margins due to weak export demand and increased imports, driving volumes into lower-margin segments. Management anticipates a conservative volume growth of 9-10% for FY26, with no expected export growth, and estimates consolidated EBITDA per tonne to rise to Rs 19,000-Rs 21,000, up from Rs 16,000 in the March quarter.

The company has delayed its downstream operations at the Jajpur facility by 8-9 months amid demand uncertainty, initially planned for the first half of FY27. This postponement highlights potential operational challenges. Nuvama has revised down its EBITDA estimates for FY25, FY26, and FY27 by 5%, 10%, and 13%, respectively, factoring in reduced volumes and profitability. Despite these hurdles, Jindal Stainless remains technically pressured, trading below all key moving averages, including the 5-day, 10-day, and 200-day averages, with an RSI of 48.3 indicating neutral momentum.

Jindal Stainless' stock has seen a 28% correction from its peak of Rs 848. Nevertheless, all nine analysts covering the stock maintain a 'buy' rating, as per Trendlyne data, reflecting confidence in the company’s long-term fundamentals despite near-term challenges. The delay in Jajpur’s downstream operations and the revised EBITDA estimates further underscore the challenges faced by the company. However, Nuvama's maintained 'buy' rating suggests optimism for future recovery, with a target price indicating a potential upside of nearly 21% from current levels.