Jindal Stainless Shares Drop 4.3% After Nuvama Slashes Target Price Amid Margin Pressure

• Share Decline: Jindal Stainless shares fell by 4.3% to ₹598.80 on the BSE after Nuvama Institutional Equities cut its target price due to weak exports and high imports impacting profitability.
• Target Price Revision: Nuvama lowered its target price for the stock to ₹723 (from ₹836), implying a potential upside of 21% from current levels, but maintained a ‘Buy’ rating.
• Weak Earnings Outlook: The brokerage flagged subdued export demand and rising imports, which have forced the company to shift volumes into lower-margin segments, impacting profitability.
• Operational Delays: Jindal Stainless delayed its Jajpur facility expansion by 8-9 months due to demand uncertainty, adding to operational headwinds.
• Conservative Guidance: The company expects a conservative FY26 volume growth of 9-10% YoY, with an EBITDA per tonne range of ₹19,000-₹21,000.
• Earnings Downgrade: Nuvama revised its EBITDA estimates for FY25, FY26, and FY27 down by 5%, 10%, and 13%, respectively.
• Technical Indicators: Jindal Stainless is trading below all major moving averages, with a neutral RSI of 48.3, signaling a lack of strong momentum.