Jindal Stainless Share Price: 'Well positioned' - Motilal Oswal maintains Buy on metal stock - Check target price

Motilal Oswal maintains Buy on Jindal Stainless - Here’s why

The brokerage believes Jindal Stainless is entering a sustained growth phase, supported by healthy demand trends across key end-user segments such as infrastructure, railways, automotive, and construction.

With India’s increasing focus on urbanisation and manufacturing-led expansion, stainless steel consumption is expected to rise steadily.

Motilal Oswal notes that the company is well placed to capitalise on this demand momentum due to its scale, diversified product portfolio, and strong distribution network.

Management has guided for strong volume growth, driven by capacity utilisation improvements and operational efficiencies.

According to the brokerage, favourable regulatory developments could act as a key catalyst for the sector.

Policy support and trade measures aimed at protecting domestic manufacturers may help improve Net Sales Realisations (NSR) and expand stainless steel spreads.

These regulatory tailwinds, combined with disciplined supply dynamics, are expected to enhance profitability and margin stability for Jindal Stainless going forward.

A key highlight in the brokerage note is the company’s strategy to secure stable raw material supplies. Jindal Stainless has been actively entering joint venture (JV) partnerships to ensure long-term access to critical inputs such as nickel and chrome.

This strategic shift reduces dependence on volatile scrap markets and de-risks operations from a predominantly scrap-based business model. By strengthening backward integration and supply chain visibility, the company aims to improve cost efficiencies and protect margins during commodity price fluctuations.

Motilal Oswal emphasises that Jindal Stainless remains one of the strongest players in the domestic stainless steel industry, backed by prudent capital allocation, operational discipline, and consistent execution. The company’s focus on value-added products and export opportunities further enhances its competitive positioning.

With structural demand growth, regulatory support, strategic raw material sourcing, and strong management execution, Motilal Oswal sees significant upside potential.

The brokerage maintains its Buy recommendation with a target price of Rs 990, reflecting confidence in the company’s long-term earnings trajectory and leadership position in India’s stainless steel market.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)