Jindal Stainless: Brokerage Upgrades Stock So A Big Rally Expected, Check Target Price

Stock Market News, Uncategorized

On January 14, Jindal Stainless Limited’s shares climbed gradually by about 4%. Currently, the stock is priced at ₹628.65 on BSE which is an increase of 3.46%. Brokerage forecasts are very bullish on this stock. Today, there was an increase in Nuama targets for the company’s share, and as a result, its stock was experiencing significant buy activity. This allows the company to now have a market cap of ₹51,786 stand. The stock has its peak price over the period of 52 weeks at ₹848 and its low at ₹513.60.

Target Price for Jindal Stainless

The brokerage has upgraded Jindal Stainless’s shares from a “Hold” to a “Buy” classification. Further, Nuama has changed their target price to ₹836 which is higher than ₹756 – this translates to over 38% gain from Monday’s closing pricing. From the note, brokerage definitely pointed onto the fact that the long term structural story of the stock remains untouched and firm. The firm further recommended investors to treat the short term correction as a chance to buy the stock.

Analyst Report on Jindal Stainless

Jindal Stainless shares have come down 28% from the peak level of ₹848. Based on the reduced volumes and profitability, Nuama has lowered his EBITDA estimates for 2025 and 2026 by 7%. The brokerage has reduced its market share estimates for 2025 and 2026 by 5% and 4% respectively. According to them, the weakness in the export market is only temporary and there should be recovery by the time we reach FY2026. They also consider the reduction in the export market to be more of a cyclic phenomenon.

Nuama estimates the company will hit a volume of 3.28 metric tons which will be an annual growth of 21.5% for FY2027, which marks the top of the hill for overall targets. This recovery is projected to be aided by new demand coming onto the market as well as gradual addition to global trends. Jindal Stainless can book numbers in EBITDA of 17-17.5k a ton in the last half this fiscal year, average it at 18k next year and 19k at the FY2027 mark.

The reasons behind the increase in profitability for Jindal Stainless is attributed to improved volumes, growing product mix and the recovery of the export market by FY2026. Nuama estimates the company’s return on capital employed RoCE will improve from 19% in FY2025 to approx 25% in FY2027. All 11 analysts covering the stock have given it a buy rating.

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