24 Jun , 2025 By : Debdeep Gupta
Shares of Jindal Steel and Power Ltd (JSPL) climbed 2 percent to Rs 930 in morning trade on June 24 after Nuvama Institutional Equities reiterated its ‘Buy’ call on the stock, projecting a robust earnings trajectory over the next two years.
With a price target of Rs 1,193—implying a 31 percent upside from the last close of Rs 911—Nuvama expects JSPL’s EBITDA to nearly double by FY27. The key drivers: improved operating leverage, a favourable product mix, lower cost of production, and broadly stable steel prices.
The brokerage also sees a sharp turnaround in volume growth. After a sluggish 1 percent CAGR over FY22–25, volumes are projected to grow at 19 percent annually through FY27, aided by ongoing capacity additions. JSPL is set to commence hot metal production from its 4.6 mtpa blast furnace in early Q2FY26, with a 3 mtpa basic oxygen furnace also on track for commissioning by the end of that quarter. This expansion is expected to lift FY26 steel output and sales to 9 mt, up 12.5 percent year-on-year.
Nuvama believes the recent correction in JSPL’s stock offers an attractive entry point, especially as the company benefits from a strong balance sheet and seasonal softness in prices.
India’s domestic steel demand has remained resilient—growing over 10 percent annually for the past three years—backed by robust infrastructure spending, a recovery in real estate, and strength in the industrial and auto sectors. While global steel prices have remained under pressure, domestic demand and a 12 percent safeguard duty on flat steel imports have supported margins, keeping them above the decade-long average.
That said, steel prices, which rose in April, have started to moderate in June amid an early monsoon onset and slowing construction activity. Inventory levels have begun to build at producers’ end, though downstream stock remains lean, suggesting any demand revival could swiftly translate into sales.
At about 9:30 am, shares of the company were trading at Rs 922, higher by 1.3 percent from the last close on the NSE. Jindal Steel and Power shares have fallen 5 percent in the last month.
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