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Jindal Stainless In Focus After Q1; Anand Rathi Stays Bullish On Long-Term Earnings Growth — Check Target Price

As the downstream facilities ramp up to their rated capacities, Jindal Stainless' profitability is likely to improve, supporting margin expansion over the medium-term, says Anand Rathi.

Jindal Stainless In Focus After Q1; Anand Rathi Stays Bullish On Long-Term Earnings Growth — Check Target Price
Despite gas supply disruptions leading to marginal volume loss in Q1 FY27, Jindal Stainless' management remains confident of achieving guided sales volume in FY27 with 3.5m tonne volume guidance for FY29E, highlights the brokerage.
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STOCKS IN THIS STORY
Jindal Stainless Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Jindal Stainless Ltd. remains one of Anand Rathi's preferred picks in the metals space despite temporary production disruptions during the June quarter.

The brokerage has maintained its 'Buy' rating and target price of Rs 940, implying an upside of nearly 28% from the current market price of Rs 736, citing resilient domestic demand, a growing share of value-added products and long-term capacity expansion plan.

Outlook and Valuation

As the Q1 FY27 performance was more-or-less in line with the brokerage's estimates along with the management maintaining guidance status-quo, Anand Rathi keeps its estimates unchanged.

Considering SS growth being superior to carbon steel and the company being the market leader, the brokearge retains Buy rating on the stock with an unrevised target price of Rs 940, valuing it at 11x FY28e EV/Ebitda (below +1SD).

ALSO READ: DOMS, United Breweries, Inox India, Orkla India: Here's What ICICI Securities Says After Q1 Results

Key Risks:

  • Further extension in QCO;
  • disruption in gas availability;
  • rise in gas prices; and
  • changes in commodity prices.

Click on the attachment to read the full report:

Anand Rathi Jindal Stainless Q1.pdf
VIEW DOCUMENT

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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