Jindal Stainless up 1% after ₹102.7 crores block deal on February 6, 2025

Jindal Stainless Limited witnessed a notable block deal on February 6, 2025, propelling its stock slightly higher in early trade. With 16.2 lakh shares exchanging hands at an average price of ₹635, the transaction was valued at approximately ₹102.7 crores. Despite mixed Q3 earnings, investor sentiment remains stable, reinforcing the importance of staying informed before choosing to invest in stocks.

Q3 performance: Mixed results but strong domestic demand

Jindal Stainless reported an 8.5% year-on-year rise in revenue to ₹9,907.3 crores, driven by a 15% year-on-year growth in sales volumes. However, profitability came under pressure as consolidated net profit dipped 5.5% to ₹654.3 crores. EBITDA also declined 3.1%, with margins contracting to 12.25% from 13.7% in Q3 FY23.

Despite these challenges, the domestic market showed resilience, with infrastructure, processing, and railways contributing to a 20% year-on-year growth in demand. However, export volumes weakened, making up only 8.5% of total sales, as cheap imports from China and weak European demand persisted. Investors planning to invest in stocks should consider how these trends impact long-term growth.

Future outlook and stock market sentiment

The company is diversifying into niche markets such as defence, nuclear, and aerospace while anticipating government support to curb Chinese imports. Analysts maintained an "accumulate" rating on the stock, revising the target price to ₹716 per share. Meanwhile, Jindal Stainless has declared an interim dividend of ₹1, with February 8, 2025, as the record date.

Summing up

Jindal Stainless Limited gained 1% in early trade on February 6, 2025, after a block deal worth ₹102.7 crores was reported. Around 16.2 lakh shares, making up 0.2% of the company's stake, changed hands at an average price of ₹635, aligning with the previous day's closing price. By 11 AM, the stock remained steady at ₹636.5 on the NSE, continuing its upward momentum. 

Despite a dip in Q3 profitability, with a 5.5% year-on-year decline in net profit, Jindal Stainless saw an 8.5% revenue increase, driven by strong domestic demand. Investors looking to invest in stocks should keep an eye on government measures and industry diversification. With a target price of ₹716, the stock is appealing to those seeking long-term growth opportunities.