Kotak Institutional Equities has reiterated its bullish stance on Jindal Steel and Power Limited (JSPL), maintaining a ‘Buy’ rating with a target price of ₹1,055, implying an upside of nearly 16% from the current market price of ₹913.10.
Following a recent meeting with the company’s CFO, Kotak highlighted that JSPL’s expansion projects remain on track and are expected to commence commissioning from Q1FY26. Despite elevated capex levels through FY26-27, the company aims to maintain net debt-to-EBITDA below 1.5x, with leverage expected to peak in Q2FY26.
The brokerage also noted JSPL’s focus on volume growth, cost-saving initiatives, and greater value addition, which are likely to enhance margins on a steady-state basis, fully reflecting by FY27. Additionally, recent steel price hikes, supported by safeguard duties and stable input costs, should help keep margins firm in the near term.
Overall, Kotak believes that JSPL’s strong execution of its expansion strategy and disciplined financial management make it an attractive long-term play in the metals space.
Disclaimer: This article is for informational purposes only and is based on brokerage reports. Investors are advised to consult with a certified financial advisor before making any investment decisions.
