Brokerage house Elara Capital has initiated coverage on Jindal Saw Ltd and assigned the stock a BUY rating, setting a target price of ₹280. According to reports from ET Now, the brokerage believes the company's earnings will normalise strongly during FY27-28, supported by several structural factors. The company's shares were trading at ₹207.50 on April 15 (9:05 AM), ahead of market opening, with a previous closing price of ₹205.15. The company's market cap is approximately ₹13,311 crore.
The Jindal Saw Ltd order book has reached an all-time high at around 1.4x trailing volumes, indicating strong earnings visibility ahead. As reported by ET Now, the upcoming launch of the new facility in the Middle East will further diversify the company's revenue mix and reduce its dependence on the domestic capex cycle. The brokerage believes this diversification strategy will support the company's growth trajectory in international markets.
According to Elara Capital, the company will benefit significantly from increased spending under the Jal Jeevan Mission, regulatory reforms in the oil and gas sector, and rising capex in line pipes globally. The focus on energy security, especially amid rising geopolitical tensions and supply chain risks around the Strait of Hormuz, has intensified, keeping pipe demand strong. A revival in Jal Jeevan Mission spending is likely to boost domestic pipe demand, while global pipeline capex remains supported by energy security concerns.
As reported by ET Now, Elara Capital says that the current valuation does not fully capture the company's strong fundamentals and upcoming growth, leaving the stock with further upside potential. The brokerage believes valuations appear attractive, with potential for rerating driven by strong execution and growth prospects. Following the brokerage's positive coverage, Jindal Saw shares were trading at ₹212.00 at 9:18 AM, up 3.34% from the previous close of ₹205.15.
