Brokerage firm Motilal Oswal has maintained a positive outlook on Jindal Stainless, setting a price target of Rs 910 per share. This follows the company’s recent second-quarter results, which showed a strong recovery in production volumes after earlier gas supply disruptions. Investors should track the company’s ability to manage rising raw material costs while sustaining its growth momentum.
Motilal Oswal has retained a positive view on Jindal Stainless, setting a price target of Rs 910 per share. This update follows the company’s recent financial results for the second quarter of the 2027 fiscal year, where it reported revenue of Rs 129 billion. This represents an 18% increase compared to the same period last year and a 14% growth over the previous quarter.
The company’s performance reflects a significant recovery. In the first quarter, Jindal Stainless faced operational difficulties due to gas supply interruptions, which reduced production levels. The latest results indicate that the company has successfully resolved these issues, leading to a rebound in production volumes and better average selling prices during the quarter.
While the topline has expanded, the company faces cost challenges. Jindal Stainless reported an EBITDA of Rs 14.3 billion, which aligns with brokerage estimates. However, rising raw material costs have put pressure on profit margins. The firm's ability to protect its margins while navigating these inflationary pressures on input costs remains a critical area for investors to track.
Regarding valuation, the brokerage has used an 11 times EV/EBITDA multiple based on fiscal year 2028 estimates to arrive at the target price. At the current market price, the stock is trading at 8.3 times the same forward-looking multiple. This indicates that the brokerage expects the company to maintain its volume growth momentum through the remainder of the fiscal year.
For investors, the key monitorables will be the consistency of volume growth and the company's strategy for dealing with raw material price volatility. As Jindal Stainless continues its operations, the ability to maintain profitability despite sector-wide cost pressures will likely influence its financial performance in the coming quarters.