Jefferies has initiated coverage on Jindal Stainless (JSL) with a Buy rating and a target price of ₹800, implying a potential upside of over 24% from the current market price of ₹644.65. The brokerage firm highlights the company’s strong position in India’s rapidly expanding stainless steel (SS) market.
Jindal Stainless is seen as a leader in the stainless steel segment, offering lower EBITDA per ton volatility and a stronger balance sheet compared to carbon steel peers. Jefferies notes that China’s SS conversion spreads are at a 10-year low, and any recovery could lead to significant margin expansion for JSL.
The brokerage expects 10% volume CAGR and 21% EPS CAGR over FY25–27E, with a return on equity (ROE) of 17%. At an 11x FY26E EV/EBITDA, Jefferies believes the stock is reasonably priced, especially considering the ~25% premium stainless steel commands globally over carbon steel.
Disclaimer: The views expressed are those of Jefferies and do not constitute investment advice or a recommendation by Business Upturn.