JSPL: Reduction in net debt expected to drive re-rating, say analysts

Rising volumes, expanded capacities, operating leverage, better realisation and debt reduction to aid earnings

Topics
Jindal Steel and Power | Q2 results | iron and steel industry

Ujjval Jauhari 

It is no secret that improving demand as well as realisations are boosting prospects of steel players. But, for Jindal Steel and Power (JSPL), additional benefits are accruing from completed expansions and operating leverage, which along with efforts on backward integration and debt reduction are keeping sentiment firm.

Not surprising, the stock which has tripled from April lows, added 5.6 per cent on Tuesday. For the September quarter (Q2; results declared last Friday), JSPL's domestic steel volumes surged 23 per cent sequentially and 29 per cent year-on-year to 1.93 million ...

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First Published: Tue, November 03 2020. 18:57 IST
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