Metal stocks to buy: Systematix initiates on Jindal Steel, Jindal Stainless, Check targets
Systematix has initiated coverage on Jindal Steel and Jindal Stainless with Buy ratings, citing strong domestic demand, capacity expansion and long-term growth.
- Jul 3, 2026,
- Updated Jul 3, 2026 9:25 AM IST
Systematix Institutional Equities has initiated coverage on Jindal Steel and Jindal Stainless with 'buy' ratings, citing a positive long-term outlook for India’s integrated steel and stainless steel sectors. In its report, Systematix said the growth case is supported by strong domestic demand, rising value addition, import substitution, premiumisation and deeper raw material integration, which it believes favour large integrated producers with scale and cost leadership.
Systematix said India remains the world’s fastest-growing major steel market, backed by sustained infrastructure spending, rapid urbanisation, manufacturing expansion and rising per-capita steel consumption. Finished steel consumption has grown at about 7 per cent CAGR between FY19 and FY26, while installed steelmaking capacity has risen to 220 million tonnes.
The National Steel Policy targets 300 million tonnes by 2030. The brokerage also noted that India is the world’s second-largest producer and consumer of stainless steel, with domestic demand growing 8-9 per cent annually, ahead of global growth.
Jindal Steel According to Systematix, Jindal Steel Ltd (formerly known as Jindal Steel & Power Ltd) is entering a multi-year earnings growth phase driven by ongoing capacity expansion and its integrated operating model. The company, among India’s top five steel producers, has expanded steelmaking capacity from 9.6 million tonnes to 15.6 million tonnes and is continuing work at Angul to become one of the country’s largest integrated steel producers.
Systematix said Jindal Steel’s captive iron ore resources of more than 2 billion tonnes, coking coal assets, a 192-km slurry pipeline with 18 million tonne capacity and a dedicated coal conveyor system provide cost advantages and raw material security. The brokerage forecasts a 21 per cent CAGR in steel sales volumes over FY26 to FY28E, mainly on account of additional capacity.
It expects return on capital employed to compress to about 9 per cent in FY26 due to peak capital expenditure, before recovering to 12-14 per cent over FY26 to FY28E as new capacities ramp up and operating leverage improves.
Jindal Stainless Systematix said Jindal Stainless Ltd offers a focused play on India’s long-term stainless steel growth story, supported by market leadership, integrated operations and a rising share of value-added products. It meets about 50 per cent of domestic stainless steel demand and has annual melt capacity of around 4.2 million tonnes. It also ranks among the top five stainless steel producers globally, excluding China.
It said stainless steel demand across railways, metro projects, water infrastructure, process industries, architecture and consumer durables, along with rising use in new applications, gives Jindal Stainless a long runway for volume growth. With captive ferro-alloy capabilities and strategic raw material sourcing, Systematix expects it to post revenue CAGR of about 13 per cent over FY26 to FY28E.
Systematix has initiated Jindal Steel with a Buy rating and a target price of Rs 1,338 per share. It has initiated Jindal Stainless with a Buy rating and a target price of Rs 869 per share.
Systematix Institutional Equities has initiated coverage on Jindal Steel and Jindal Stainless with 'buy' ratings, citing a positive long-term outlook for India’s integrated steel and stainless steel sectors. In its report, Systematix said the growth case is supported by strong domestic demand, rising value addition, import substitution, premiumisation and deeper raw material integration, which it believes favour large integrated producers with scale and cost leadership.
Systematix said India remains the world’s fastest-growing major steel market, backed by sustained infrastructure spending, rapid urbanisation, manufacturing expansion and rising per-capita steel consumption. Finished steel consumption has grown at about 7 per cent CAGR between FY19 and FY26, while installed steelmaking capacity has risen to 220 million tonnes.
The National Steel Policy targets 300 million tonnes by 2030. The brokerage also noted that India is the world’s second-largest producer and consumer of stainless steel, with domestic demand growing 8-9 per cent annually, ahead of global growth.
Jindal Steel According to Systematix, Jindal Steel Ltd (formerly known as Jindal Steel & Power Ltd) is entering a multi-year earnings growth phase driven by ongoing capacity expansion and its integrated operating model. The company, among India’s top five steel producers, has expanded steelmaking capacity from 9.6 million tonnes to 15.6 million tonnes and is continuing work at Angul to become one of the country’s largest integrated steel producers.
Systematix said Jindal Steel’s captive iron ore resources of more than 2 billion tonnes, coking coal assets, a 192-km slurry pipeline with 18 million tonne capacity and a dedicated coal conveyor system provide cost advantages and raw material security. The brokerage forecasts a 21 per cent CAGR in steel sales volumes over FY26 to FY28E, mainly on account of additional capacity.
It expects return on capital employed to compress to about 9 per cent in FY26 due to peak capital expenditure, before recovering to 12-14 per cent over FY26 to FY28E as new capacities ramp up and operating leverage improves.
Jindal Stainless Systematix said Jindal Stainless Ltd offers a focused play on India’s long-term stainless steel growth story, supported by market leadership, integrated operations and a rising share of value-added products. It meets about 50 per cent of domestic stainless steel demand and has annual melt capacity of around 4.2 million tonnes. It also ranks among the top five stainless steel producers globally, excluding China.
It said stainless steel demand across railways, metro projects, water infrastructure, process industries, architecture and consumer durables, along with rising use in new applications, gives Jindal Stainless a long runway for volume growth. With captive ferro-alloy capabilities and strategic raw material sourcing, Systematix expects it to post revenue CAGR of about 13 per cent over FY26 to FY28E.
Systematix has initiated Jindal Steel with a Buy rating and a target price of Rs 1,338 per share. It has initiated Jindal Stainless with a Buy rating and a target price of Rs 869 per share.