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Centrum Broking has buy call on Jindal Steel & Power with a target price of Rs 674. The current market price of Jindal Steel & Power is Rs 552. Time period given by analyst is one year when Jindal Steel & Power Ltd. price can reach defined target.
Jindal Steel & Power Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 55844.72 Crore) operating in Metals - Ferrous sector.
Jindal Steel & Power Ltd. key Products/Revenue Segments include Iron & Steel Items, Power, Other Sales, Other Operating Revenue, Export Incentives, Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 12535.35 Crore, down -7.93 % from last quarter Total Income of Rs 13615.49 Crore and up 15.02 % from last year same quarter Total Income of Rs 10898.70 Crore. Company reported net profit after tax of Rs 1866.10 Crore in latest quarter.
Investment Rationale
JSPL’s winning of coal blocks is a long term positive for the company. This not only provides assured supply but is also financially remunerative. Though the brokerage has not included the benefits of captive coal yet (will do so with progress happening in next two quarters), calculation implies that this can positively affect the fair value by Rs143/share at peak capacity. It reiterates positive view on JSPL with target price of Rs674 (earlier Rs659), rolling over to FY24 numbers. Its TP is based on 5.5x FY24E EV/EBITDA.
Promoter/FII Holdings
Promoters held 60.44 per cent stake in the company as of 31-Dec-2021, while FIIs owned 8.93 per cent, DIIs 16.71 per cent.
Jindal Steel & Power Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 55844.72 Crore) operating in Metals - Ferrous sector.
Jindal Steel & Power Ltd. key Products/Revenue Segments include Iron & Steel Items, Power, Other Sales, Other Operating Revenue, Export Incentives, Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 12535.35 Crore, down -7.93 % from last quarter Total Income of Rs 13615.49 Crore and up 15.02 % from last year same quarter Total Income of Rs 10898.70 Crore. Company reported net profit after tax of Rs 1866.10 Crore in latest quarter.
Investment Rationale
JSPL’s winning of coal blocks is a long term positive for the company. This not only provides assured supply but is also financially remunerative. Though the brokerage has not included the benefits of captive coal yet (will do so with progress happening in next two quarters), calculation implies that this can positively affect the fair value by Rs143/share at peak capacity. It reiterates positive view on JSPL with target price of Rs674 (earlier Rs659), rolling over to FY24 numbers. Its TP is based on 5.5x FY24E EV/EBITDA.
Promoter/FII Holdings
Promoters held 60.44 per cent stake in the company as of 31-Dec-2021, while FIIs owned 8.93 per cent, DIIs 16.71 per cent.
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