Axis Securities’ Axis PUNCH highlights Jindal Steel Ltd. as a high-conviction BUY for the next three to six months, bringing the stock back in focus. The steel giant is about to enter a pivotal development phase, supported by significant capacity expansion at its Angul plant, margin-improving backward integration, and a much stronger balance sheet. Axis sees an upside potential of Rs 1,123 per share, meaning a 10% rise from current levels of Rs 1,021 as of 31st December, 2025, with net debt significantly lowered, significant capital expenditures already behind it, and the stock trading at an alluring price of barely 7x FY28 EBITDA.
Jindal Steel News
Jindal Steel recently announced that it is going to raise its current structural steel capacity from 1.2 million tonnes per year (MTPA) to 2.4 MTPA by mid-2028 as part of a major expansion of its structural steel production capabilities at its Raigarh facility. The development would strengthen Jindal Steel’s position as the industry leader in structural steel and significantly expand the supply of heavy and ultra-heavy structural steel sections in India.
Along with cutting-edge upstream and downstream technology advancements, Jindal Steel will commission a new, specialized structural steel mill as part of the growth roadmap. This will make it possible to produce the larger, heavier, and more sophisticated parallel flange sections needed for next energy and infrastructure projects. Currently, the firm produces parallel flange sections with sectional weights of up to 333 kg per meter that range in length from 100 mm to 900 mm. Production capacity will reach ultra-heavy sections with a depth of 1,100 mm and a weight of 1,500 kg per meter as a result of the continuous growth.
“These enhanced capabilities will support growing demand from infrastructure, refinery, power, renewable energy, transmission, and high-rise construction projects, while significantly reducing India’s reliance on imported heavy structural steel sections,” said Jindal Steel in a statement.
Subrat Panda, Head – Structures & CSB, Jindal Steel, said: “Doubling our structural steel capacity at Raigarh is a strategic step towards building long-term domestic capability for large and complex projects. With the ability to manufacture the largest parallel flange sections in India, we are enabling faster execution, improved design efficiency, and reduced dependence on imports for critical infrastructure and energy applications.”
Why Should You Buy Jindal Steel Shares?
As per Axis Securities, here are the reasons to buy the shares of Jindal Steel for a target price of Rs 1,123.
Capacity expansion to drive growth: Jindal steel is on the cusp of expansion at its Angul facility. It has recently (on 26th Sep’25) raised its iron making capacity to 15.02 MT from 10.42 MT by commissioning 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.
Synchronizing with the iron making expansion it has commissioned a 3 MTPA of Basic Oxygen Furnace (BOF-II) under phase I, raising crude steelmaking capacity from 6 MTPA to 9 MTPA at Angul, taking total steel making capacity to 12.6 MT from 9.6 MTPA. Phase II expansion at Angul of another 2 MTPA of DRI-II and 3 MTPA of BOF-III is planned to be completed by Mar’27 which will take total steel and iron making capacity of the company to 15.6 MTPA and 17.02 MTPA respectively.
Margin expansion projects will enhance cost competitiveness: Jindal steel is also focusing on backward integration, VAP products and increasing captive power share for its operations. Jindal Steel’s iron ore requirements are partly met through its captive mines at Kasia (3.11 MT) and Tensa (7.5 MT) and it recently acquired Roida-I iron ore and manganese block of 3 MTPA capacity.
The Iron ore slurry pipeline from Barbil to Angul is 90% completed and is guided to commission in H2FY26. It is also developing its coal mines to fulfil its captive requirement. Among its four mines, two are operational (Utkal C and Gare Palma IV/6), while the other two (Utkal B1 & B2) are in advanced stages of mine development. Utkal B1 coal mining will start in H2FY26.
Under its 1.2 mtpa CRM complex it commissioned 0.20 mt of continuous galvanizing line (CGL-1) in Q1FY26 and is progressing towards commissioning of multiple lines in FY26.. The 1 st module of Sub-critical Boiler Plant (SBPP) of 525 MW is ready and synchronization with grid is expected in Q3FY26 and commissioning of 2 nd module is in progress.
Improved balance sheet: The company has total capex plan of Rs 47,040 Cr by FY28E (including Angul expansion and Rs 16,000 Cr of cost efficiency projects over FY26-28), of which Rs 30,850 Cr has been incurred by Sep’25 and balance will be funded from internal accruals. It will keep the Net debt/EBITDA below 1.5x throughout the cycle. It has reduced its debt and its Net Debt/EBITDA has come down from 4.56x in FY20 to 1.48x as of Q2FY26.
Jindal Steel Valuation
“As per our estimates, the stock is currently valued at 7x of FY28 EBITDA, which appears to be attractive. Accordingly, we recommend a BUY on the stock with a target price of Rs 1,123/share, implying an upside of 10% from the CMP,” commented the research analysts of Axis Securities.
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