Metal stocks hit record highs in weak market Should you buy after Q3?

“JSL reported a healthy growth in sales volumes in Q3FY23. For the quarter, standalone sales volume was up 33% YoY, 22% QoQ. EBITDA from standalone operations came in above our estimates, aided by healthy sales volumes. JSL’s share price has given a return of around 31 per cent in the last one year. Around 196 in January 2022 257 in January 2023),” said brokerage and research firm ICICI Securities, which maintained its buy rating on metal stock with a target value of 300 per share.

For the quarter, JSL’s standalone operations reported a sales volume of 330427 tonnes, exceeding our estimate of 28500 tonnes. EBITDA/Tonne Standalone Operations | 18834/tonne, more than the estimate of Rs. 18,000/tonne. So, the upcoming standalone EBITDA for the quarter was on 622 cr (up 51% QoQ), higher than our estimate 513 crores.

“Demand has improved, helping JDSL report EBITDA/t of approx. over 20,000 in Q4FY23. Management is confident of achieving the upper-end of EBITDA/t in FY24 (Guided 21-23k/t), including JUSL. Besides, reduction in net debt will open up more possibilities,” said another brokerage Edelweiss, which has maintained ‘buy/buy’ on shares of Jindal Stainless with a target price of Rs. 346 ago 331.

Jindal Stainless (JSL) is one of the world’s leading stainless steel manufacturing companies and India’s largest stainless steel producer. JSL operates an integrated stainless steel plant at Jajpur, Odisha. The total stainless steel capacity of the complex is 1.1 million tonnes per annum. The company has readily available infrastructure for cost-effective brownfield expansion.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.