Jindal Stainless (Hisar) (JSHL) is one of the leading players in specialty stainless steel production in India with a diversified value-added product portfolio. The multibagger stock has given a return of more than 225% over the last 12 months, from around ₹120 in February 2021 to currently hovering over ₹390 levels.
The domestic brokerage and research firm ICICI Securities has a Buy rating on Jindal Stainless Hisar shares with a target price of ₹488 per share with target period of around twelve months.
Jindal Stainless reported a healthy performance in Q3FY22 as its consolidated topline of grew 33% year-on-year (YoY) to ₹4,173 crore, while it was up 11% from the previous quarter. Its consolidated EBITDA rose 47% YoY and net profit grew 90% to ₹515 crore.
“With respect to the precision strip division, JSHL has recently commissioned the first phase of expansion wherein the precision strip capacity has been expanded from 22000 tonnes per annum (TPA) to 48000 TPA. Going forward after the second phase, precision strip capacity would be further expanded to 60000 TPA (from 48000 TPA) which would be completed by Q4FY23,” the brokerage note stated.
The company is also expanding blade steel capacity from current capacity of 14000 TPA to 24000 TPA in two phases at a total capex of ₹200 crore for both phases. The above mentioned factors could act as key triggers for future price performance, as per ICICI Securities.
Apart from Jindal Stainless (Hisar), the brokerage also likes Jindal Stainless as it has a 1.1 million tonnes per annum (MTPA) integrated facility with backward integration (ferro chrome and captive power plant). Its Buy tag on Jindal Stainless comes with a target price of ₹250.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Never miss a story! Stay connected and informed with Mint.
our App Now!!