Accumulate Jindal Stainless; target of Rs 715: Prabhudas Lilladher

Prabhudas Lilladher's research report on Jindal Stainless

Jindal Stainless (JDSL) reported in-line standalone operating performance in Q3FY25 led by strong volume growth. Volumes grew 15% YoY to 588kt led by strong 20% YoY domestic demand led by infra, processing and railways sector. Exports volume continued to decline and contributed ~8.5% to total volumes. Average realization declined 0.8% QoQ due to flattish Stainless Steel (SS) prices amid cheap imports from China and continued weakness in export market led by Europe. EBITDA/t was largely in-line with PLe at Rs17,075 despite tough market conditions. JDSL is strengthening its presence in export markets through offerings of niche products and working on product development for niche applications viz. defense, nuclear, aerospace sectors. Management remains hopeful for GoI measures to curb Chinese imports and no major increase in tariffs from USA (c.25%).

Outlook

We expect revenue/EBITDA/PAT CAGR of 13%/14%/20% over FY24-27E. At CMP, the stock is trading at 8.9x/7.5x EV of FY26E/FY27E EBITDA. Maintain ‘Accumulate’ rating with revised TP of Rs716 (earlier Rs739) valuing at 9x EV of Sep’26E EBITDA.

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Jindal Stainless - 31012025 - prabhu