Jindal Steel & Power Ltd (JSPL) is back in the spotlight as Nuvama Institutional Equities places a bullish call on the stock, citing strong upside potential backed by macro and company-specific tailwinds. The brokerage firm sees multiple levers of growth for JSPL, making it a compelling pick in India’s metals and infrastructure portfolio.
Here are the 3 key reasons powering Nuvama’s optimism on Jindal Steel & Power:
1️⃣ Strong Balance Sheet & Debt Reduction
JSPL has significantly deleveraged its balance sheet over the last two years. Its net debt-to-EBITDA ratio has come down to less than 1x, providing ample headroom for capex and growth investments.
Net debt reduced by over ₹13,000 crore in 24 months
Healthy cash flows from core steel operations
Increasing financial flexibility supports expansion
This strengthens investor confidence and makes the company more resilient to cyclical downturns in commodity pricing.
2️⃣ Capacity Expansion & Export Focus
Jindal Steel is aggressively expanding its crude steel capacity from 9.6 MTPA to 15.9 MTPA by FY25. This positions the company to capture both domestic infrastructure demand and rising export opportunities.
New capacity to come online in Angul and Raigarh
Higher contribution from long steel and value-added products
Rising global demand for green steel aligns with JSPL’s ESG strategy
Nuvama sees this expansion as a volume-led growth catalyst for the next 3–5 years.
3️⃣ Favorable Domestic & Global Demand Outlook
India’s infrastructure push through the National Infrastructure Pipeline (NIP) and global steel cycle recovery are supportive of higher steel prices and demand.
Strong demand from railways, roads, and construction
Export opportunities to Europe and Middle East
Rebound in steel prices after China’s production cuts
With JSPL's integrated operations and export-readiness, it is well-positioned to capitalize on both domestic and global steel demand trends.
📈 Brokerage View
Nuvama has a buy rating on JSPL with a target price of ₹870, implying a 20–25% upside from current levels.
“Jindal Steel is one of the best plays on India's capex cycle with strong margin visibility and deleveraged balance sheet,” says Nuvama’s note.
❓ FAQ Section
Q1: Why is Nuvama bullish on Jindal Steel & Power?
A: Nuvama cites JSPL’s strong balance sheet, capacity expansion plans, and favorable domestic/global steel demand as key drivers for its bullish stance.
Q2: What is the target price set by Nuvama for JSPL?
A: Nuvama has given a buy rating with a target price of ₹870, offering 20–25% upside.
Q3: Is Jindal Steel reducing its debt?
A: Yes. JSPL has significantly reduced its net debt in the last two years, improving its financial flexibility.
Q4: What is JSPL’s current production capacity?
A: JSPL currently operates at 9.6 million tonnes per annum (MTPA) and plans to scale up to 15.9 MTPA by FY25.
Q5: Does JSPL have export exposure?
A: Yes. The company exports steel to Europe, the Middle East, and other markets, and is increasing its export focus.
Q6: Is JSPL a good stock for long-term investment?
A: With a deleveraged balance sheet, strong cash flows, and growth projects underway, JSPL presents a solid long-term investment case in the steel sector.
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Reported by Benny on June 24, 2025.
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