Jindal Stainless share: Shares of Jindal Stainless Limited saw a rise of up to 4 percent today on January 14. Currently this stock is trading at Rs 628.65 on BSE with a gain of 3.46 percent. On the other hand, brokerage firms also seem bullish on this stock. Nuvama has expressed hope of a rise in the stock, after which heavy buying was seen in the company’s shares today. With today’s rise, the market cap of the company has increased to Rs 51,786 crore. The stock’s 52-week high is Rs 848 and 52-week low is Rs 513.60.
Jindal Stainless’s target price
Brokerage firm Nuvama has upgraded shares of Jindal Stainless to “Buy” from its previous rating of “Hold”. Nuvama has also increased its target price on the stock to ₹836 from ₹756. This means that there is a possibility of 38 percent rise in the company’s shares from Monday’s closing price. The brokerage has written in its note that the long term structural story of the stock remains intact. Near term correction in the stock should be used as a buying opportunity by investors.
Brokerage opinion on Jindal Stainless
Shares of Jindal Stainless have fallen 28 per cent from their recent high of ₹848. Nuvama has cut Jindal Stainless’s FY2025 and FY26 EBITDA estimates by 7%, taking into account lower volumes and profitability. The brokerage termed the weakness in the export market as temporary and expressed hope that it will pick up in the financial year 2026. It has cut Jindal Stainless’s volume growth estimates by 5% and 4% for fiscal 2025 and 2026.
Nuvama expects volume of 3.28 metric tons in fiscal year 2027, which will be an annual growth of 21.5 percent. This recovery will be supported by improvement in global demand and volumes coming from new capacity. Jindal Stainless may register EBITDA of ₹17000 – ₹17500 per tonne in the second half of the current financial year, after which it will reach an average of ₹18000 by the next financial year and ₹19000 in FY2027.
Jindal Stainless’s profitability increase will be driven by better volumes, product mix and improving export markets in FY26. According to Nuvama, the company’s Return on Capital Employed (RoCE) is likely to increase from an estimated 19% in FY 2025 to around 25% by FY 2027. All 11 analysts covering Jindal Stainless have given the stock a “Buy” rating.
Disclaimer: The advice or opinions expressed on Moneycontrol.com are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Moneycontrol advises users to always seek the advice of a certified expert before taking any investment decision.