Buy Jindal Stainless; target of Rs 830: Motilal Oswal

Motilal Oswal is bullish on Jindal Stainless has recommended buy rating on the stock with a target price of Rs 830 in its research report dated August 07, 2025.

Broker Research

August 08, 2025 / 14:54 IST

BUY

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bselive
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Todays L/H

Motilal Oswal's research report on Jindal Stainless

Revenue stood at INR102b (+8% YoY and flat QoQ), in line with our estimate. The sales volume came in line with our est. at 626KT (+8% YoY and -3% QoQ). Exports share was 9% in 1QFY26 vs. 8% in 4QFY25. ASP stood at INR163,000/t (flat YoY and +3% QoQ), led by SS price recovery during the quarter. Adj. EBITDA stood at INR13.1b, up 8% YoY and 24% QoQ, against our est. of INR11.4b. EBITDA/t improved to INR20,915 (flat YoY and +27% QoQ), led by favorable pricing and lower costs during the quarter. APAT stood at INR7.1b (+10% YoY and +19% QoQ) against our est. of INR6b during the quarter. Consol. net debt stood at INR38.7b, with net debt/EBITDA of 0.8x as of Jun’25 vs 0.9x as on Mar’25.

Outlook

We have projected JSL revenue CAGR of ~14%, with steady EBITDA of INR20,500-22,000/t, leading to ~17% EBITDA CAGR over FY25-27E. Moreover, the healthy CFO and steady capex outflow will ensure a resilient B/S. At CMP, JSL trades at 9.9x EV/EBITDA and 2.6x P/BV on FY27E. We reiterate our BUY rating with a TP of INR830 (premised on 11x FY27E EV/EBITDA).

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