Jindal Stainless Q2 Results SHOCKER? Prabhudas Lilladher Reveals 'HOLD' Rating & Rs748 Target! Will Investors Cheer?

Author

Akshat Lakshkar | Whalesbook News Team

Detailed Coverage:

Prabhudas Lilladher has released a research report on Jindal Stainless Limited, maintaining a 'Hold' rating for the stock with a price target of ₹748 (revised from ₹759). The report highlights Jindal Stainless's standalone operating performance in the second quarter of fiscal year 2026 (Q2FY26), which was slightly better than expected, largely due to a robust 16% year-on-year increase in domestic volumes.

Overall, the company's total volumes grew by 14.8% year-on-year to 648 kilotonnes (kt). This growth was significantly fueled by domestic sales of 590 kt, benefiting from strong demand across key sectors including railways, metro projects, white goods, lifts and elevators, and the automotive industry, further boosted by the festive season. However, export volumes saw only a modest increase of approximately 3% year-on-year to 58 kt. This slowdown in exports is attributed to ongoing uncertainties in global markets stemming from geopolitical issues and policy changes, which have created market confusion.

Average realizations improved by 1.7% quarter-on-quarter, supported by a minor uptick in Stainless steel (SS) prices. Management has reiterated its volume and EBITDA per tonne guidance, with a strategic focus on increasing the contribution of value-added products and products with high-end applications, particularly cold-rolled products.

**Impact** This report will likely impact investor sentiment towards Jindal Stainless Limited and potentially influence trading decisions for the stock. It also provides insights into the demand dynamics within the Indian stainless steel sector and its key end-user industries, which could have broader implications for related industrial sectors. The 'Hold' rating suggests that while the company has positive growth prospects, the current stock price may reflect these expectations, limiting immediate upside potential. Rating: 7/10

**Difficult Terms Explained**: * **Standalone operating performance**: Refers to the company's financial results from its core business operations, excluding any subsidiaries or joint ventures. * **Volume growth**: An increase in the quantity of goods or services sold over a specific period. * **YoY**: Year-on-year, comparing a period with the same period in the previous year. * **kt**: Kilotonnes, a unit of mass equal to 1,000 metric tons. * **Robust demand**: Strong and consistent consumer or industrial interest in a product or service. * **Festive season uplift**: An increase in sales and economic activity due to holidays and festivals. * **Geopolitics**: The study of how geography and economics influence politics and international relations. * **Policy changes**: Modifications or new regulations implemented by governments that can affect industries. * **Average realisation**: The average price received per unit of product sold. * **QoQ**: Quarter-on-quarter, comparing a quarter with the previous quarter. * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. * **EBITDA/t**: EBITDA per tonne, indicating profitability on each tonne of product manufactured. * **Value-added products**: Products that have undergone processing to increase their worth and often have higher profit margins. * **CAGR**: Compound Annual Growth Rate, the average annual growth rate of an investment over a specified period of time longer than one year. * **FY25-28E**: Fiscal Year 2025 to Fiscal Year 2028 Estimates. This refers to the projected financial performance during these fiscal years. * **CMP**: Current Market Price, the current trading price of a stock on an exchange. * **EV**: Enterprise Value, a measure of a company's total value, including debt and minority interest, less cash and cash equivalents. * **EBITDA multiple**: A valuation metric where the Enterprise Value is divided by EBITDA. It's used to assess how much investors are willing to pay for each unit of a company's earnings before interest, taxes, depreciation, and amortization. * **TP**: Target Price, the price at which an analyst or investor expects a stock to trade in the future.