HSBC initiates coverage of leading Indian steel cos, says sector "in a sweet spot"

Jindal Steel

28/04/2026 06:03

** HSBC initiates coverage on JSW Steel JSTL.NS with "Buy" and PT of 1,460 rupees, Jindal Stainless JIST.NS with "Buy" and PT of 880 rupees, Jindal Steel JINT.NS  with "Hold" and PT of 1,280 rupees

** Brokerage says the steel sector is "in a sweet spot," citing multi-year demand visibility, import-protection policies and strong balance sheets

** Says steel capacity expansion can't keep up with demand growth; prices and margins are rising

** Expects capacity to increase 9-11 MT annually over FY25-FY30e; forecasts 8.1% CAGR in stainless steel demand

** Says Middle-East conflict won't have material impact on most steel cos since they use coking coal-reliant blast furnaces

** For JINT, which imports stainless steel scrap and uses gas, disruptions are limited and should normalize as gas supply improves -- HSBC

** Shares of JSTL up 1.5% at 1,302 rupees, JIST up 1.1% at 778.7 rupees and JINT up 0.5% 1,284 rupees

 (Reporting by Mridula Kumar in Bengaluru)

 ((Mridula.Kumar@thomsonreuters.com;))