'Buy' Jindal Stainless Shares Maintains Motilal Oswal, Revises Target Price — Here's Why

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Motilal Oswal Report

The stainless steel industry is poised for strong growth as India’s stainless steel consumption is expected to reach 7.3 mt by FY31 and 12.5-20 mt by 2047, backed by rising adaptability across sectors like infrastructure projects, manufacturing, automotive, consumer durables, and growing new-age sector.

We believe Jindal Stainless Ltd. is well placed to realize this robust demand outlook, with higher VAP supporting margins.

From being solely a flat stainless steel producer to a diversified long stainless steel player, Jindal Stainless has expanded into rebar, wire rods, and others, unlocking significant infrastructure opportunities.

Additionally, its focus on value-added CR SS has strengthened its position in both domestic and export markets.

At current market price, the stock trades at 9.6x EV/Ebitda and 2.5x price/book value on FY27E. We maintain our Buy rating with a revised target price of Rs 810 (premised on 11x FY27E EV/Ebitda).

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