Stocks to Buy today - Shrikant Chouhan Recommendations, Feb 10:
JSW Steel | ADD | FV: ₹1,300
Current Market Price – ₹1,244 | Technical Support - 1,220-1,200 | Technical Resistance – 1,270-1,305
JSW Steel is primarily engaged in the manufacture and sale of iron and steel products. The company reported a consolidated Ebitda of ₹6620 crore (up 23 per cent Y-o-Y, down 16 per cent Q-o-Q) in Q3FY26, broadly in-line with our estimates. India steel's adjusted Ebitda stood at ₹8,478/tonne (up 4.1 per cent Y-o-Y, down 20 per cent Q-o-Q), impacted by lower realisations during the quarter. India steel volumes came in at 7.4 million tonnes (up 13.5 per cent Y-o-Y, 5 per cent Q-o-Q), marginally above expectations.
International subsidiaries (US, Europe) reported Ebitda of ₹820 crore in Q3FY26 (down 50 per cent Q-o-Q), impacted by the shutdown of the Ohio plant due to plant upgrades. Total subsidiary Ebitda was stable Q-o-Q, largely due to the full ramp-up of JVML capacities, which supported consolidated performance.
JSTL also announced a 5 mtpa greenfield capacity addition at Jagatsinghpur, Odisha, at a capex of ₹31,600 crore under its subsidiary JSW Utkal Limited (JUL). The capital cost for the first phase is attractive at $700/tonne, with an option to expand capacity by an additional ~8.2 mtpa in phases. Including planned capacity additions at BPSL (4.5 mtpa), Dolvi (5 mtpa), Kadapa (1 mtpa) and Vijayanagar (2 mtpa), this provides growth visibility until ~47 mtpa by FY2030 based on Board-approved capex plans. Further, the BPSL stake's strategic monetisation through the JFE JV is expected to cut debt by a significant ~₹3,700 crore in phases by H1FY27, providing additional headroom for accelerated growth capex.
Domestic hot-rolled coil (HRC) prices have increased substantially from December 2025 lows and are now up ~₹5,000/tonne versus Q3FY26 averages, while China prices remain at broadly similar levels as Q3FY26 averages. After the safeguard duty imposition, domestic HRC prices are now ~4 per cent lower versus import parity levels and have further scope for improvement in a seasonally strong quarter. A combination of improved realisations and stronger demand is expected to support margins, which will be only partially offset by higher coal costs (management estimates ~$15–20/tonne impact Q-o-Q).
JSTL remains on track to reach a capacity of ~49 mtpa by FY2030E from 35.7 mtpa currently. We build in ~10 per cent CAGR in volumes for JSW’s India division over the next three years, with Ebitda estimated at ₹10,878/12,222/12,831 per tonne in FY26/27/28E. Additionally, downstream projects, captive iron ore and slurry pipeline commissioning over FY25–27E should enhance margins by ₹1,500–2,000/tonne.
We maintain ADD on JSW Steel on attractive risk-reward and superior growth visibility over the next five years. Growing domestic demand, supportive government policies and a consolidated industry structure continue to underpin a strong investment case for Indian steel producers.
Acutaas Chemicals | BUY | FV: ₹2,350
Current Market Price – ₹2,000 | Technical Support - 1,950-1,920 | Technical Resistance – 2,030-2,090
Acutaas Chemicals has come a long way in two decades. The company started back in 2004 as a small partnership firm, became a private limited company in 2006–07, and then got listed in 2021. What began as a focused intermediates manufacturer has now evolved into a diversified specialty chemicals platform with global customers.
Today, the business is largely driven by advanced pharmaceutical intermediates, basically the key building blocks used to manufacture medicines. This segment contributes roughly 85 per cent of FY25 revenues. Within this, the most exciting piece is CDMO (Contract Development and Manufacturing Organization). Instead of just selling products, Acutaas works closely with pharma innovators to develop and manufacture molecules across different stages. This makes revenues stickier and improves margins because the company becomes part of the client’s long-term supply chain rather than just a vendor. Over time, CDMO is becoming a meaningful growth engine.
The remaining ~15 per cent of revenues come from specialty chemicals. These include high-purity chemicals used in electronics, semiconductors, and battery applications. In semiconductor chemicals, the company manufactures electronic-grade photoresist chemicals, a niche but high-entry-barrier segment. In battery chemicals, it is working on electrolyte additives, which are important for improving battery life and safety. These businesses are still smaller compared to pharma, but they open up a new runway linked to clean energy and digital infrastructure.
Q3FY26 results clearly showed that the CDMO engine is firing strongly. Revenue growth was sharp, but more importantly, margins expanded meaningfully due to better product mix and operating leverage. Ebitda and profit growth outpaced revenue growth, and management has raised its full-year growth guidance to around 30%, reflecting confidence in the order book.
Financially, the balance sheet remains comfortable with low debt and improving return ratios. Return on capital employed (ROCE) and return on equity (ROE) have strengthened as scale and profitability improved. We continue to value Acutaas at 35x earnings and maintain a target price of ₹2,350. Strong CDMO momentum and gradual scaling of battery and semiconductor verticals keep the long-term growth story intact.
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Disclaimer: Shrikant Chouhan is the head of equity research at Kotak Securities. Views expressed are his own.
 "Stocks picks, Feb 10: Kotak Sec recommends JSW Steel, Acutaas Chemicals")
