Nuvama Cuts JSPL Target, Still Sees 25% Upside Despite Steel Price Woes

• Nuvama cut Jindal Steel Ltd.'s (JSPL) price target by 9.7% to ₹1,264 from ₹1,400, maintaining a "buy" rating.
• Despite the target cut, Nuvama projects a 24.8% upside potential for JSPL shares from its previous closing price.
• The brokerage cited falling steel prices and higher production costs, expecting steel spreads to weaken but bottom in Q3.
• Nuvama revised down JSPL's EBITDA estimates for FY26, FY27, and FY28 by 16%, 13%, and 7% respectively, due to lower steel prices.
• However, it forecasts a significant EBITDA/tonne expansion of ₹3,000-₹4,000 in FY27-FY28 driven by higher volume, realization, and cost reductions.

Why It Matters: Nuvama lowers JSPL target but keeps 'buy' rating, citing short-term headwinds but strong long-term growth.