Buy Jindal Stainless; target of Rs 860: ICICI Securities

ICICI Securities's research report on Jindal Stainless

Jindal Stainless (JSL)’s Q2FY26 EBITDA was 5% better than our estimates at INR 13.9bn (+17%/+6% YoY/QoQ) driven by better sales volumes. The company managed to exceed the upper end of its EBITDA/te guidance, reporting INR 21,416/te (highest in past six quarters) despite lower exports. JSL has maintained its 9–10% volume growth guidance with INR 20,000–21,000/te EBITDA for FY26. Indonesian Nickle project is EBITDA positive, while various capex projects (Indonesia slab, domestic HRAP/CRAP mill) are on track. The company expects the Maharashtra mega project capex to start from FY27–28; and until then, net debt is expected to shrink further. We upgrade to BUY with a revised target price of INR 860 (18x FY28E EPS), up from INR 820.

Outlook

We have rolled over to FY28E, keeping the multiple intact. Our target price stands at INR 860 (18x FY28E EPS). Upgrade to BUY.