Jindal Stainless shares rose 275% from 52-week low; can they cross Rs 400 mark?

Shares of metal major Jindal Stainless Ltd are trading at record high with the scrip delivering returns of 266% in a year. The multibagger stock has clocked 803% returns in three years. In comparison, the 30-stock Sensex has risen 80.30% during the period. The stock of the metal producing firm, closed at Rs 365.30, 3.31% higher in the previous session on BSE. The scrip also hit a record high of Rs 368.55 in the same session.  

They fell to a 52-week low of Rs 97.50 on July 6 last year. The stock has recovered 275% from its 52-week low hit on July 6 last year. The stock of the stainless steel maker has gained 44.44% this year and risen 266.22% in the last one year. Total 0.37 lakh shares of the firm changed hands amounting to a turnover of Rs 1.35 crore on BSE. Market cap of Jindal Stainless rose to Rs 30,080 crore.     

In terms of technicals, the relative strength index (RSI) of Jindal Stainless stands at 78.6, signaling it's trading in the overbought zone. Jindal Stainless stock has a one-year beta of 0.8, indicating very 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.   

Here’s a look at what analysts said on the outlook of the stock.   

Abhijeet from Tips 2trades said, "Jindal Stainless is bullish but also overbought on the daily charts with next resistance at Rs 370. A daily close below the support of Rs 341 could lead to targets of Rs 316-300 in the near term."  

Gaurav Bissa, VP, InCred Equities said, “JSL has been one of the strongest and most consistent metal names for the last few quarters. The stock retested five-year breakout followed by fresh upside. The stock has recently made a fresh swing high breakout with strong follow up buying candles seen on the daily charts. On point and figure charts, the stock has triggered a follow through breakout on 0.25x3 daily charts with cluster targets placed around Rs 380 levels. Fresh entry is not advised at the current levels whereas those who are already holding the stock can use trailing stoploss of Rs 355 for a move towards Rs 380-385."  

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock after a short halt and consolidation near Rs 330-340 zone has again picked up momentum to continue with the strong up-trend with near-term target of Rs 375-380 levels and thereafter if strength maintained, then can achieve for the levels near Rs 405-410 zone. The near-term support can be maintained near Rs 335-340 zone. The RSI has indicated further strength after a short consolidation and has further upside potential movement from here on.” 

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One Ltd said, “Jindal Stainless has been in a secular uptrend and is hovering above all its significant EMAs (Exponential Moving Averages) on the daily chart. At present, the stock is hovering in uncharted territory and is poised to continue its upward trend. On the level front, Rs 340 is likely to cushion any short-term blip, while a series of support can be seen from the Rs 335 to  Rs 325 zone with a bullish undertone.” 

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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