Jefferies has maintained its buy rating on Jindal Stainless Ltd (JSL) with a target price of ₹925 per share following a strong Q2FY26 performance, which beat expectations on operating profit and margins.
EBITDA rose 17% year-on-year and 6% sequentially, coming in 7% ahead of Jefferies’ estimates. The brokerage noted that while rising stainless steel imports into India could pose a short-term challenge, margins are expected to stay supported as China’s stainless steel conversion spreads remain about 25% below long-term averages.
Jefferies forecasts 9% volume growth and 16% and 21% CAGR in EBITDA and EPS, respectively, over FY25–28, aided by operational efficiency and demand recovery in both domestic and export markets. The company’s balance sheet is expected to turn net cash by FY28, providing scope for future expansion or acquisitions.
At 10x FY27 estimated EV/EBITDA, Jefferies considers the stock’s valuation reasonable given its strong fundamentals and sustained growth trajectory.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
