Multibagger metal stock hits record high; can it cross Rs 950 mark?

Shares of Jindal Stainless hit their all-time high amid a rally in the market today. The multibagger metal stock rose 1.94% to  Rs 840 on BSE. Market cap of the firm rose to Rs 67,000 crore. A total of 0.18 lakh shares changed hands amounting to a turnover of Rs 1.47 crore on BSE. 

At 10:22 am, shares of the stainless steel maker were trading 1.41% lower at Rs 812.55 on BSE. The multibagger stock hit a 52 week low of Rs 317 on June 23, 2023. The stock of the stainless steel maker has gained 654% in two years and risen 672% in three years. 

In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 66.7, signaling it's trading neither in the overbought nor in the oversold zone. Jindal Stainless shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. 

Jindal Stainless stock has a one-year beta of 0.8, indicating low volatility during the period.

Centrum Broking has an ‘add’ rating on the Jindal Stainless stock with a price target of Rs 647.

Jindal Stainless reported a 30% fall in net profit at Rs 501 crore in Q4 against profit after tax (PAT) of Rs 716.29 crore in the corresponding period of the last financial year.

Revenue from operations declined 3.2% YoY to Rs 9,454 crore in Q4 against Rs 9,765 crore reported in the year-ago period. The company's board also recommended a final dividend of Rs 2 per equity share for the financial year ended March 31, 2024.

ICICI Securities has maintained a buy call on the Jindal Stainless stock. The brokerage mentioned the below key points from the investors meeting.

“1) Recently announced capex of INR 54bn will likely fuel volume growth of 15-20% YoY through to FY29. 2) Collaboration and not competition with the largest stainless player in the world to likely help improve the company’s positioning. 3) Further expansion plans likely to be in India with capex paced in-line with demand and cash flows. 4) Focus on enhancing value-added products at Hisar plant and increasing volume at Jajpur plant. Going ahead, we believe that the recently announced capex and collaboration with Tsingshan is likely to benefit the company in the medium term. Maintain BUY on the JSL stock with an unchanged TP of Rs 955 on 18x FY26E EPS,” said the brokerage.