Jindal Steel Q4 Results: IDBI Capital Maintains 'Hold' Rating, Hikes Target Price - Here's Why

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IDBI Capital Report

Jindal Steel and Power Ltd.’s Q4 FY25 revenue exceeded our estimates, while Ebitda/PAT were below our expectations. Revenue increased 12% QoQ to Rs132 billion, led by 12% increase in volumes. Realizations were flat QoQ, as TMT prices saw a slight correction after healthy rise in Q3, while HRC prices rose marginally on anticipation of a safeguard duty. Ebitda grew 4% QoQ to Rs 23 billion, supported by lower other overheads. However, Ebitda/tonne declined 7.2% QoQ to Rs 10,661 impacted by one-offs totaling Rs 2.3 billion.

JSPL incurred capex of Rs 23.1 billion in Q4 FY25 versus Rs 28.6 billion in Q3 FY25. The net debt decreased by Rs 16 billion to Rs 119.6 billion during the quarter.

JSPL also acquired Allied strips in an all-cash deal at Rs 2.2 billion. We value the stock based on EV/Ebitda multiple of 6.5x FY27E Ebitda to derive a target price of Rs 952 (earlier Rs 922). We maintain Hold rating on the stock.

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