Although there is heavy volatility in the market at the present time, but the fundamentals of some stocks have strengthened. They can give high returns to the investors in the coming days.
Jindal Stainless Stock Price: Although there is heavy volatility in the market at the present time, but the fundamentals of some stocks have strengthened. They can give high returns to the investors in the coming days. One of them is the strong share of the metal sector Jindal Stainless (JSL) ie Jindal Stainless. Brokerage house ICICI Securities is bullish on the stock and has increased the target price drastically. The brokerage house estimates that this stock can give almost double returns from its current price.
46% decline has come this year
There has been a huge decline in the shares of Jindal Stainless this year. This stock has weakened about 46 percent since January 1. During this, the share price has come from Rs 196 to around Rs 104. At the same time, this stock has lost 54 percent from the 1-year high of Rs 224. That is, from the high of 1 year, it has now come down to half the price. At present, the valuation of the stock has become attractive after this correction.
export maintenance target
Brokerage house ICICI Securities has given a buy advice for the stock giving a target of Rs 200. Earlier the brokerage had given a target of Rs 120 for the stock. The brokerage house says that the company aims to maintain exports at 16,000tpm even after the export duty has been reduced to 15 per cent. Peak run rate is 30,000tpm. The blast furnace capex at JUSL is being reconsidered. At the same time, the merger of JUSL with JSL is also being considered.
Business model expected to be strong
All these decisions are being finalized, soon any disclosure can be made on them, which will be positive for the stock. Considering the current export run rate and post levy of export duty, the management expects a 5-10 per cent reduction in volumes. The brokerage says that whenever the export duty will be reduced or removed in the coming days, the business model of the company will be strengthened. The stock may give better returns in the coming days. Though the brokerage has also lowered the volume and profitability estimates for FY23E/FY24E, it has retained the EBITDA estimates for FY24E.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
