Target: ₹1,123
CMP: ₹1,067.45
Jindal steel is on the cusp of expansion at its Angul facility. It has recently (September 26, 2025) raised its iron making capacity to 15.02 mt from 10.42 mt by commissioning one of India’s largest blast furnaces of 4.6 mt (BF-II), almost doubling hot metal capacity at Angul from 6 mtpa to 10.65 mtpa.
Synchronising with the iron making expansion, it has commissioned 3 mtpa of Basic Oxygen Furnace (BOF-II) under phase I, raising crude steelmaking capacity from 6 mtpa to 9 mtpa at Angul, taking total steel making capacity to 12.6 mt from 9.6 mtpa. Phase II expansion at Angul of another 2 mtpa of DRI-II and 3 mtpa of BOF-III is planned to be completed by March 27, which will take total steel and iron making capacity of the company to 15.6 mtpa and 17.02 mtpa respectively.
Jindal steel is also focusing on backward integration, VAP products and increasing captive power share for its operations. Jindal Steel’s iron ore requirements are partly met through its captive mines at Kasia (3.11 mt) and Tensa (7.5 mt) and it recently acquired Roida-I iron ore and manganese block of 3 mtpa capacity. The iron ore slurry pipeline from Barbil to Angul is 90 per cent completed and is guided to commission in H2FY26. It is also developing its coal mines to fulfil its captive requirement.
The stock is currently valued at 7x of FY28 EBITDA, which appears to be attractive. We recommend a Buy on the stock with a target price of ₹1,123.