Nuvama Cuts Jindal Steel Target, Still Sees 26% Upside Despite Challenges

• Nuvama reduced Jindal Steel's price target from ₹1400 to ₹1264 per share, yet projects a 26.5% upside from its December 24 closing price.
• The target cut is attributed to declining steel prices and high production costs, which are expected to weaken steel spreads, though improvement is anticipated in Q3.
• EBITDA per ton is forecast to drop to ₹8200 in Q4 FY25, but the company is projected to grow at a 17% CAGR from FY25-28.
• Nuvama revised down EBITDA estimates for FY26, FY27, and FY28, but expects EBITDA/ton to rise significantly in FY27-28 due to higher volumes, realization, and cost reduction.
• Jindal Steel's current share price is ₹999 on BSE, with a market cap exceeding ₹1 lakh crore and promoters holding 62.37% stake.

Why It Matters: Nuvama lowered Jindal Steel's target but maintains a significant upside, banking on future improvements.