DINESH

Jindal Steel

Industry: Iron & Steel
Latest CMP 1,092
Today's Change ▼ -0.76%
52-Week High / Low 1,289 | 946
Price Date: 14-Aug-2026
Recommendation Hold
Target Price 1,607
Expected Upside 21.3%
Forecast Horizon 2 Years
Historical CAGR 16.3%
1,000 Invested 17-Aug-2006
Today's Value 20,570
Investment Period 20 Years

Stock Snapshot

Post Results Return
+5.0%
Mild Positive Re-rating
1-Year Target Price
1,193
2-Year Target Price
1,607
52-Week High / Low
1,289 / 946
20-Day Return
+5.6%
Market Cap (Cr.)
111,115
Current PE
24.2
P/BV Ratio
2.2
Dividend Yield
0.2%
Industry PE
19.4

Price Performance

Basis of our Recommendation

Jindal Steel's management is focused on a strategic transition towards higher-margin, value-added products, supported by the successful ramp-up of its Angul facility and enhanced raw material security through captive mines. This aggressive capacity expansion, coupled with a disciplined capital allocation strategy, positions the company to leverage India's robust domestic demand for steel, particularly in infrastructure and automotive sectors. Despite facing near-term headwinds from rising coking coal prices and global steel demand weakness, management remains optimistic about achieving strong revenue growth and operational efficiencies. Vista's financial outlook reflects this optimism, forecasting accelerating revenue growth while acknowledging potential margin pressures. The anticipated commissioning of the slurry pipeline and increased capacity utilization are expected to drive operational improvements, supporting a fair valuation aligned with intrinsic value. Over the next 12-24 months, Jindal Steel's ability to navigate global pricing volatility and execute its strategic initiatives will be critical. Key opportunities include capturing domestic demand growth and optimizing logistics, while watchpoints include geopolitical risks and cyclical demand fluctuations

👍 Why We Like This Stock

  • Successful ramp-up of the Angul facility enhances capacity and supports revenue growth
  • Strategic focus on high-margin, value-added products is expected to improve profitability
  • Strong domestic demand in India provides a favorable backdrop for growth

Things To Watch Out For

  • Rising coking coal prices may pressure margins in the near term
  • Global steel demand weakness, particularly from China, poses risks to pricing
  • Execution risks associated with ramping up new capacities and geopolitical tensions

Key Parameters

Balance Sheet Strength
Stable Financial Structure
Market Share
Stable
Industry Outlook
Improving
Analyst View
Buy
Dividend History
Consistent
FII Holdings
Stable

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 50,354 50,129 53,225 58,969 70,194
Profit Before Tax (Cr.) 6,161 5,468 5,284 4,390 8,472
PBT Margin 12.2% 10.9% 992.8% 7.4% 12.1%
Net Profit (Cr.) 5,796 3,459 4,445 3,754 7,233
Earnings Per Share 56.9 33.6 43.7 36.8 71.1

Analyst Recommendations

Broker Recommendation Target Price Date
Anand Rathi ▲ Buy 1,410 27-Jul-2026
CLSA ▲ Buy 1,420 27-Jul-2026
Citigroup ▼ Sell 900 27-Jul-2026
Elara Capital ► Accumulate 1,168 26-Jul-2026
Emkay Global ▲ Buy 1,400 27-Jul-2026
Goldman Sachs ► Hold 1,335 26-Apr-2026
HSBC ► Hold 1,280 28-Apr-2026
ICICI Securities ▲ Buy 1,254 27-Jul-2026
IDBI Capital ▲ Buy 1,224 27-Jul-2026
Kotak Securities ► Add 1,280 27-Jul-2026
Macguire ▲ Buy 1,321 10-Apr-2026
Morgan Stanley ▲ Overweight 1,340 11-Jun-2026
Motilal Oswal ▲ Buy 1,200 27-Jul-2026
Nomura ▲ Buy 1,350 26-May-2026
Nuvama ▼ Reduce 1,154 23-Apr-2026
Prabhudas Liladhar ▲ Buy 1,298 27-Jul-2026
UBS ► Neutral 1,300 27-Jul-2026
Consensus Recommendation ▲ Buy
Consensus Target 1,279
Coverage 17 Analysts
Analysts' Viewpoint
Jindal Steel is focusing on expanding its value-added product mix and enhancing operational efficiencies, notably through the commissioning of an iron ore slurry pipeline expected to significantly reduce logistics costs. The company aims to achieve full capacity utilization and increase captive raw material integration, which should bolster margins. However, analysts note challenges from rising coking coal costs and seasonal demand fluctuations. The company's strategic priorities include debt reduction and leveraging internal accruals for growth, with key catalysts being the pipeline's commissioning and capacity ramp-ups.

Company Overview

Show Company Profile

Jindal Steel Limited operates in the steel, mining, and infrastructure sectors in India and internationally. It offers rails; medium and heavy hot-rolled parallel flange beams and column sections; plates and coils; angles and channels; cold heading quality, electrode quality, and high carbon wire rods; round bars; fabricated sections; Jindal Speedfloor concrete flooring solutions; Jindal Panther TMT rebars; semi-finished products, including slabs, billets, blooms, beam blank, and rounds; and Jindal Panther cement comprising Portland slag cement, Portland composite cement, and ground-granulated blast-furnace slag, as well as rockhard plates, cathode bards, and track shoes. The company also operates and maintains a total captive power plant capacity of 1,634 megawatts. In addition, it operates coal and iron ore mines located at various locations in India, Australia, and Africa. The company was formerly known as Jindal Steel & Power Limited and changed its name to Jindal Steel Limited in July 2025. Jindal Steel Limited was incorporated in 1979 and is based in New Delhi, India.