Jindal Steel stock beats returns from Tata Steel, JSW Steel, Hindalco in a year; will it cross Rs 700 mark ?

Shares of Jindal Steel and Power have emerged as the top gainers among steel stocks during the last one year. With 41% returns in a year, the stock has outperformed peers such as JSW Steel (11.24%),  Hindalco (minus 4.61%), Tata Steel (minus 1.14%) and NMDC (minus 12.67%).  The Jindal Steel stock hit a 52-week high of Rs 612.75 on January 13 this year. In the current session, the stock was trading 0.11% lower at Rs 588.60. Market cap of the firm fell to Rs 59,940 crore. Total 0.10 lakh shares changed hands amounting to a turnover of Rs 61.35 lakh on BSE. 

In the last trading session, Jindal Steel stock ended 3.41% lower at Rs 589.25 against the previous close of Rs 610.05 on BSE. Total 1.39 lakh shares changed hands amounting to a turnover of Rs 8.23 crore on BSE. Market cap of the firm stood at Rs 60,108 crore. The stock hit a 52-week low of Rs 304.20 on June 22, 2022 on BSE. 

Recently, the firm said it would invest up to Rs 1,500 crore to make recently acquired Monnet Power operational. The investment will be made over a period of the next 12 to 18 months, Managing Director Bimlendra Jha said.  

In terms of technicals, the relative strength index (RSI) of Jindal Steel stands at 56.2, signaling it's neither oversold nor overbought. Jindal Steel stock has a one-year beta of 1.4, indicating very high volatility during the period. Jindal Steel shares stand higher than the 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. 

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In case of Tata Steel, the relative strength index (RSI) stands at 63.1, signaling it's neither oversold nor overbought. Tata Steel stock has a one-year beta of 1.3, indicating very high volatility during the period. Tata Steel shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  

The relative strength index (RSI) of Hindalco stands at 57.2, signaling it's neither oversold nor overbought. Hindalco stock has a one-year beta of 1.3, indicating very high volatility during the period. Hindalco stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  

Coming to NMDC, the relative strength index (RSI) stands at 58.2, signaling it's neither oversold nor overbought. NMDC stock has a one-year beta of 1, indicating average volatility during the period. NMDC stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  

Here’s a look at what analysts said about the prospects of the Jindal Steel stock what should investors do with the scrip.  

Abhijeet from Tips2trade said, “Jindal Steel has strong resistance at Rs 610 in the daily charts. A close above this level could lead to Rs 670. However, a possible negative divergence could derail this uptrend and hence investors should keep a stop loss of Rs 580 for their buy positions." 

Ravi Singh, Vice President and Head of Research, Share India said, “Jindal Steel’s plan to invest up to Rs 1,500 crore to make recently acquired Monnet Power operational, has provided an upward thrust to the stock. The stock made a low of  Rs 304 levels in June last year and is now trading around double the price. The oscillators are at neutral levels whereas the moving averages are suggesting an up move ahead. Jindal  Steel stock has immediate resistance around  Rs 620 levels, above which the counter may touch the levels of  Rs 640 levels.” 

Jitendra Upadhyay, senior Equity Research Analyst, Bonanza Portfolio said, "Cost efficiency likely to be maintaining high earning due to captive iron ore and thermal coal to increase the output of the DRI plant and the blast furnace, respectively and upcoming capacity expansion of 6 mtpa at Angul expected to result in a higher volume in FY25E. Hence, we expect JSPL would be able to report EBITDA per tonnes more than 15000 by FY24E. With lower cooking coal, iron ore prices and stable thermal prices this would support in EBITDA and PAT level in H2FY23 and JSPL’s balance sheet transformed with strong FCF and systematically looking for non-core divestment.JSPL currently has the strongest balance sheet among all primary steel producers. We recommend JSPL at 5.9x FY24E EBITDA resulting in a target price of Rs 735 per share."  

 
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