Accumulate Jindal Stainless; target of Rs 715: Prabhudas Lilladher

Accumulate

Prabhudas Lilladher's research report on Jindal Stainless

We met the management of Jindal Stainless (JDSL) to get an update on current demand in domestic and export markets amid the ongoing Tarriff war. Domestic volume growth remains strong, while JDSL is seeing better traction for export orders now Vs last two quarters, with the benefits expected to be visible in 1QFY26. ⁠ JDSL maintains its 10% volume growth guidance for FY26, with an upward bias depending on the situation in key export markets such as the EU. Near term margins could remain under pressure due to fallen nickel/ stainless steel (SS) prices, continued cheaper imports from China and discussions around US tariffs, which have created significant pressure on domestic pricing in the last two months. ⁠However, with improved nickel prices, 1QFY26 margins should bounce back to near normalcy. ⁠Some of the HRAP/CRAP Capex at Odisha will spill over into FY26 due to weakness in markets to ~Rs48bn vs planned Rs55bn for FY25.

Outlook

We expect revenue/EBITDA/PAT CAGR of 11%/12%/17% over FY24- 27E. At CMP, the stock is trading at 9.3x/7.9x EV of FY26E/FY27E EBITDA. We move forward TP on FY27 basis and maintain ‘Accumulate’ rating with TP of Rs715 valuing at 9x EV of Mar’27E EBITDA.

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Jindal Stainless - 24032025 - prabhu