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Systematix Report
The brokerage firm Systematix has initiated coverage on Jindal Steel and Power Ltd. and Jindal Stainless Ltd. with Buy ratings and has set a target price of Rs 1,338 and Rs 869 implying a potential upside of 29% and 26% respectively from the currenc levels.
The brokerage remains structurally positive on the long-term growth outlook for India's integrated steel and stainless steel (SS) sectors, supported by robust domestic demand, increasing value addition, import substitution, premiumisation and greater raw material integration.
Additionally the brokerage believes these structural trends and initiatives favour large integrated producers with scale, cost leadership and the ability to capture incremental demand.
India remains the world's fastest-growing major steel market, underpinned by sustained infrastructure investments, rapid urbanisation, manufacturing expansion and rising per-capita steel consumption. Finished steel consumption has grown at ~7% compound annual growth rate over FY19-FY26, while installed steelmaking capacity has expanded to 220mt, with the National Steel Policy targeting 300mt by 2030.
These trends provide a multi-year demand runway and support continued capacity additions across the industry.
India is also the world's second-largest producer and consumer of SS, with domestic demand growing at 8-9% annually - well ahead of global growth. Increasing penetration across railways, metros, water infrastructure, process industries, construction, renewable energy and consumer applications continues to broaden the addressable market and enhance the sector's structural growth profile.
Against this backdrop, Systematix believes Jindal Steel and Jindal Stainless are uniquely positioned to benefit from accelerating domestic demand, supported by their integrated operations, expanding capacities, and an increasing value-added product mix.
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