Jindal Stainless shares in a bull run: Can the stock cross Rs 350 mark?

Shares of Jindal Stainless Ltd were in focus today after ICICI Direct maintained its target price for the metal firm at Rs 350. At 9:40 am, shares of the stainless steel maker were trading on a flat note amid a rally in the broader market today. Jindal Stainless shares fell 0.60% to Rs 298.75 against the previous close of Rs 300.55 on BSE.  Earlier, the stock hit an intraday high of Rs 306.9, rising 2.11% on BSE. They hit a 52 week high of Rs 329 on March 8 and a 52 week low of Rs 95.05 on June 20. The stock of the stainless steel maker has gained 25.15% this year and risen 164% in the last one year. Total 0.47 lakh shares of the firm changed hands amounting to a turnover of Rs 1.42 crore on BSE. Market cap of Jindal Stainless stood at Rs 24,645 crore.   

In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 58.8, signaling it's trading neither in the overbought nor in the oversold zone. Jindal Stainless stock has a one-year beta of 0.9, indicating low volatility during the period. Jindal Stainless shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. 

Jindal Stainless Ltd has manufacturing  facilities  at Jajpur,  Odisha  and Hisar, Haryana and an overseas unit in Indonesia, ICICI Direct said, reiterating its buy call with a target price of Rs 350.  

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has just come out of the rectangular box pattern on the daily chart to indicate a breakthrough with improving bias and volume participation and a fresh upward move can be anticipated with near-term target of Rs 328 level. The near term support would be around Rs 298-300 zone which one can maintain as the stop loss level."

The stock is also among the top picks of B&K Securities. In a report dated May 18, the brokerage upgraded its target price from the earlier Rs 315 to Rs 352. It assigned EV/EBITDA of 5.7 times on FY25E EBITDA considering the upcoming volume growth, stable pricing, combination of Jindal United Steel Ltd (JUSL) and exports. 

Jindal Stainless reported a 20% fall in net profit to Rs 716.29 crore in the March 2023 quarter. However on a quarter-on-quarter basis, the firm reported a 40% rise in profit from Rs 512 crore in the December quarter. The metal firm’s board approved a proposal to raise Rs 5,000 crore via issue of debt securities. On May 18, Jindal Stainless shares gained 8.42% to Rs 303.95 against the previous close of Rs 280.35 on BSE. 

The New Delhi-based company's revenue from operations climbed to Rs 9765.08 crore in Q4 from Rs 9725.91 crore a year earlier. Sales zoomed 9% to Rs 35,697 crore in the last fiscal against net profit of Rs 32732 crore in the previous fiscal.  However, profit fell 33% to Rs 2083.83 crore in FY23 against Rs 3109.39 crore in the previous fiscal. 

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