Jindal Stainless shares receive buy call from DAM Capital, check stock reaction  

Shares of Jindal Stainless Ltd are likely to rise 28% in a year, according to brokerage DAM Capital. Initiating coverage on the metal major, the brokerage- projected a growth of 21% in FY25-27E EBITDA CAGR, led by volume growth and spread expansion.

DAM Capital assigned a buy call with a target price of Rs 760 to the Jindal Stainless stock. The brokerage believes the near-term headwinds driven by weak export markets (Europe) are transient.

In the current session, Jindal Stainless shares were trading 0.58% higher at Rs 591.80 against the previous close of Rs 588.40 on BSE.

Market cap of the firm rose to Rs 48,808 crore.

A total of 4276 shares changed hands amounting to a turnover of Rs 25.24 lakh on BSE.

The metal stock fell to a 52 week low of Rs 568.70 on February 17, 2025 and rose to a 52 week high of Rs 848 on July 9, 2024.

The stock of the stainless steel maker has fallen 14.77% this year and lost 16% in the last one year.

Jindal Stainless stock has a one-year beta of 1, indicating average volatility during the period.

In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 38.6, 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.

Recently, brokerage Nuvama trimmed target price for Jindal Stainless 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.

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.