Shares of Jindal Steel & Power dropped as much as 5.5% to an intra-day low of Rs 918.90 a day after the company reported a 21% fall in its net profit of Rs 1,337.9 crore in Q1 FY25. However, the brokerage houses are still confident in the stock as they maintain a “Buy” rating, with an increased target price. Here are some of the top brokerages’ views on Jindal Steel & Power post Q1 results:
Elara Securities on Jindal Steel & Power
The brokerage firm said that it expects the hit from weak steel prices to be mitigated by a likely fall in coking coal and iron ore costs in Q2FY25 for the company. Also, strengthening of product mix with further ramp-up of the new HSM unit should be beneficial. In the long term, the rising share of captive coal consumption and phase-wise completion of announced capacity expansion are likely to support future performance. The company maintained the “Accumulate” rating on the stock. “We cut our EBITDA estimate by 7% for FY25 but largely retain it for FY26. We introduce FY27E and roll over to June 2026E from March 2026E,” said the broking firm in a research report. The company has increased the target price to Rs 1,102 from Rs 1,074 a piece earlier.
JM Financial Services
The company’s consolidated EBITDA came in at Rs 2,800 crore, higher than the brokerage’s estimates. According to JM Financial, it was driven by strong volume delivery 2mn ton+ and higher captive thermal coal integration during the quarter. “With a strong balance sheet to support growth capex, increasing raw material security and strong volume growth pipeline, JSP (the company) remains well positioned to withstand cyclical challenges – subject to execution risk,” said JM Financial in a research report. The broking firm maintained the “Buy” rating on the stock. Also, it raised the target price to Rs 1,128 from Rs 1,061.
Anand Rathi Share and Stock Brokers
The broking firm has maintained the “Buy” rating on the stock, with a target price of Rs 1,115 apiece. According to anand Rathi, the brokerage house, the company is expected to continue its sales momentum and clock a minimum of 2m tonnes per quarter in volumes. “Considering its strong focus on raw-material integration, cost-control initiatives and increase in the share of VAP, we retain our “Buy” rating.”