Steel stock to buy: Jindal Steel shares up 3%; Axis Securities sees upside in 3-6 months

Shares of Jindal Steel & Power Ltd were buzzing on the bourses on Wednesday. At last check on Wednesday, shares of Jindal Steel were trading 3.48 per cent higher at Rs 1,056.55 on the BSE, significantly outperforming its previous close of Rs 1,021 per share.

Why Axis is betting on this OP Jindal group company

Axis highlighted that Jindal Steel is currently ‘on the cusp of expansion’ at its Angul facility, a key driver for future volume growth. The company recently commissioned one of India's largest blast furnaces (BF-II) on September 26, 2025, raising its iron-making capacity to 15.02 MT from 10.42 MT.

Meanwhile, brokerage firm Axis Securities initiated a ‘Buy’ recommendation on the metal heavyweight. In its latest report, the brokerage has pegged a target price of Rs 1,123 on Jindal Steel stock, signaling a potential upside in a timeframe of three to six months.

The brokerage noted, “It commissioned one of India's largest blast furnaces of 4.6 MT (BF-II), almost doubling hot metal capacity at Angul from 6 MTPA to 10.65 MTPA”. Furthermore, the Phase II expansion at Angul is slated for completion by March 2027, which will elevate the total steel and iron-making capacity to 15.6 MTPA and 17.02 MTPA, respectively.

Apart from capacity expansion, the brokerage pointed out that margin expansion projects are likely to enhance cost competitiveness. The company is aggressively focusing on backward integration through captive power and raw material security. The iron ore slurry pipeline from Barbil to Angul is reportedly 90 per centcompleted and is guided to commission in H2FY26, Axis said. 

Additionally, the company is ramping up its coal mine developments to meet captive requirements, with production at the Utkal B1 coal mine expected to commence in the second half of FY26.

Axis Securities said that Jindal Steel has significantly reduced its debt burden over the last few years. "It has reduced its debt and its Net Debt/EBITDA has come down from 4.56x in FY20 to 1.48x as of Q2FY26," the note stated, adding that the company intends to keep this ratio below 1.5x throughout the cycle.

On the valuation front, the brokerage finds the risk-reward ratio attractive at current levels. "As per our estimates, the stock is currently valued at 7x of FY28 EBITDA, which appears to be attractive," Axis Securities said.

Based on the financials provided in the report, the brokerage expects Jindal Steel to post an EPS of Rs 68 in FY27E and Rs 89 in FY28E, up from Rs 28 in FY25.