Jindal Steel dips after Nuvama downgrade, flagging 10% downside; check target price

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Shares of Jindal Steel Ltd dropped to their intraday lows on Wednesday, April 22, after Nuvama downgraded the stock to ‘Reduce’ from ‘Buy’ and lowered its target price to ₹1,154 from ₹1,293 earlier.

The stock settled at its intraday lows of ₹1,277 apiece, 0.92% below Tuesday’s closing. The revised target price implies an approximately 10% downside from the session’s closing price of ₹1,277 per share.

The brokerage also cut its Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) estimates for FY26, FY27 and FY28 by around 5%, 11% and 8%, respectively, though it continues to factor in a 41% EBITDA CAGR over the period between FY26 and FY28.

Nuvama said it expects Jindal Steel’s profitability to peak in the first quarter of FY27, driven by higher steel prices.

The brokerage firm noted that cost and volume benefits are likely to be offset by lower steel prices, which could weigh on margins beyond the near term.

Jindal Steel has gained 15.44% in the last one month and nearly 40% over the past 12 months.

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