Jindal Stainless shares rise 2% as Motilal Oswal initiates coverage with buy call, sees 24% upside

Economic Times

13-05-2025

Shares of Jindal Stainless climbed as much as 1.6% on Tuesday to Rs 620.50 on the BSE after brokerage Motilal Oswal initiated coverage on the stock with a 'buy' rating at a target price of Rs 770, implying a potential upside of 24% from current levels, citing robust demand prospects, expansion plans, and a focus on value-added products.
ADVERTISEMENT Motilal Oswal said it expects Jindal Stainless to deliver a 14% revenue CAGR between FY25 and FY27, supported by a 10% volume CAGR and 4% growth in net sales realisation (NSR). 'We expect the company to report EBITDA/APAT CAGR of 17%/21% over FY25–27,' the brokerage said.
The company is undertaking a significant capacity expansion, with plans to increase total capacity by 40% to 4.2 million tonnes per annum (MTPA) by FY27. 'New capacity additions will support upstream production and cater to rising demand,' the brokerage said. Motilal Oswal also highlighted the company's strategic acquisitions and increased raw material security as key drivers of its long-term growth.
Jindal Stainless has already demonstrated solid growth momentum, with a 12% CAGR in revenue between FY22 and FY25, largely driven by a similar 12% growth in volumes, the brokerage said.The brokerage's coverage initiation comes shortly after Jindal Stainless reported its Q4FY25 results last week. Consolidated net profit rose 18% year-on-year to Rs 590.99 crore, supported by higher sales volumes. Revenue from operations grew 7.9% Y-o-Y to Rs 10,198 crore. On a sequential basis, however, net profit fell 9.8% even as revenue grew 2.9%.
ADVERTISEMENT For the full year FY25, consolidated revenue stood at Rs 39,312.21 crore, a 1.9% increase from the previous year. Net profit declined 7.7% Y-o-Y to Rs 2,505.20 crore. Managing Director Abhyuday Jindal said the company achieved 9–10% volume growth during the year and expects a similar pace in FY26. He also noted the company is targeting a 30% jump in export volumes this year.Jindal also commented on the U.S. steel import tariffs, saying the recently announced 25% blanket duty would create a level playing field for all global players. 'The 25% duty was already there on imports from India and China since 2018. But now it's a blanket duty on everybody,' he said.
ADVERTISEMENT The company recently signed a non-binding memorandum of understanding with the Maharashtra government for a potential investment of Rs 40,000 crore to set up a stainless steel manufacturing facility over the next 10 years. The facility is expected to generate more than 15,000 jobs.
Jindal Stainless shares have fallen nearly 10% over the past year and are down 11% in the last six months. However, the stock has rebounded recently, gaining 14.4% in the past month and 5.8% in the last week.
ADVERTISEMENT On the technical front, the stock is trading below three of its eight key simple moving averages (SMAs) — the 100-day, 150-day, and 200-day SMAs — suggesting mixed momentum. The 14-day Relative Strength Index (RSI) stands at 60.1, indicating the stock is not yet in overbought territory.
Also read | I-Sec maintains Buy on Jindal Stainless, lowers target price to Rs 760
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