Morgan Stanley has revised its investment stance on Jindal Steel & Power Limited (JSPL), upgrading the stock from Equal Weight to Overweight rating while simultaneously raising the target price to ₹1,250.00 per share.

Rating Upgrade Details

The investment bank's decision to upgrade JSPL represents a significant shift in its assessment of the steel company's investment attractiveness. The move from Equal Weight to Overweight indicates Morgan Stanley's increased confidence in the stock's potential to outperform relative to its coverage universe.

Investment Implications

The Overweight rating typically suggests that Morgan Stanley expects JSPL shares to deliver above-average returns compared to other stocks in their coverage. This rating change signals the brokerage's improved outlook on the company's business fundamentals and market positioning within the steel sector.

The target price of ₹1,250.00 per share provides investors with Morgan Stanley's valuation assessment, representing the price level the brokerage believes the stock can achieve based on their analysis of the company's prospects.

Jindal Stainless Limited announced that its Nomination and Remuneration Committee has approved the grant of 1,186,108 stock options to eligible employees under the JSL-Employee Stock Option Scheme 2023 (ESOS 2023). The decision was made during the committee's meeting held on January 20, 2026, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Stock Option Grant Details

The approved stock option grant is structured as a balanced allocation between two types of equity instruments. The company has designed the grant to provide employees with different participation mechanisms in the organization's equity growth.

Each option is convertible into one equity share of face value ₹2.00. The ESOP pricing of ₹403.00 represents a 50% discount from the closing market price on NSE as of January 19, 2026, which was the stock exchange with higher trading volume on the day preceding the grant date.

Vesting and Exercise Framework

The stock options operate under a structured vesting and exercise framework designed to align employee retention with company performance. All options, upon vesting, shall be exercisable during an exercise period of four years, providing employees with flexibility in timing their equity participation.

Historical Performance of ESOS 2023

The company provided comprehensive data on the performance of previously granted options under the same scheme as of December 31, 2025. This historical data demonstrates the scheme's implementation and employee participation levels.

The JSL Employee Welfare Trust has realized ₹3.97 crores from the options that have been vested and exercised by eligible employees. The exercise of 284,333 options has resulted in the creation of an equivalent number of new equity shares in the company.

Regulatory Compliance and Scheme Structure

The JSL-Employee Stock Option Scheme 2023 operates in full compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The scheme provides comprehensive guidelines for the manner in which options shall be dealt with, ensuring transparency and regulatory adherence.

The current grant does not involve any variation of terms from the original scheme parameters. The company confirmed that there are no subsequent changes, cancellations, or modifications to the newly granted options, maintaining consistency with the established framework of the ESOS 2023 scheme.