Jindal Steel Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for JINDALSTEL, BSE:532286 Jindal Steel Ltd.

Jindal Steel Ltd.

26 May 2020

1053.95

-0.82%

Q4FY20 Result Update - Delivers on all front; Maintain BUY

Buy: Jindal Steel Ltd.

Target

Prabhudas Lilladhar

estimates by 11%/9% at Rs22.2b, led by higher margins in India and Shadeed steel operations. EBITDA of Domestic steel/Shadeed/Jindal power (JPL) rose 16%/93%/30% QoQ (+8%/+82%/25% YoY). Aided by lower interest cost, quarter turned black with PBT (before exceptional) of Rs1.9bn (PLe:loss of Rs1.5bn) against loss of Rs2.0bn/Rs4.0bn in Q3FY20/Q4FY19....

Jindal Steel Ltd. is trading above all available SMAs

Jindal Steel Ltd.

05 May 2020

1053.95

-0.82%

India steel production up 5 % YoY in Apr '20

Buy: Jindal Steel Ltd.

Target

Motilal Oswal

JSPL produced 550kt steel and related products during Apr20 (up 5% YoY). This was on the back of record high production from the Angul Blast Furnace, which produced 298kt hot metal, clocking 10kt daily. Though domestic demand remained dry during the month, production was boosted by large export orders, primarily of billets from China due to the shortage Apr20 sales stood at 335kt, of which 248kt (74% of total) were exports. The balance production in Apr20 is at the ports, waiting to be exported out; sales We note that while these export volumes would earn lower EBITDA margins (likely ~INR5,000/t), it is still positive as this should help recover fixed costs if plants earn positive cash flows, which is critical in this environment. JSPLs Oman operations reported production of 106kt, down ~40% over the normal monthly run-rate. However, the decline in sales volumes was lower at 33%.

Jindal Steel Ltd. is trading above all available SMAs

Jindal Steel Ltd.

04 Feb 2020

1053.95

-0.82%

Jindal Steel and Power Ltd.

Buy: Jindal Steel Ltd.

Target

AUM Capital

Jindal Steel and Power Ltd. (JSPL), a part of the USD 22 billion diversified O. P. Jindal Group with the youngest son Mr. Naveen Jindal as a chairperson who transformed a moderately performing company into a world class organization. JSPL, established in the year 1952 is an industrial powerhouse and one of India's fastest growing and largest integrated steel manufacturers with a dominant presence in steel, power, mining and infrastructure sectors. The company operates some of India's most advanced steel manufacturing and power generation capacities of global scale through backward and forward integration spanning across the states of Chhattisgarh,...

Promoters unpledged 0.20% of shares in last quarter. Total pledge stands at 11.15% of promoter holdings

Jindal Steel Ltd.

20 Jan 2020

1053.95

-0.82%

Weakest margin in three years???

Buy: Jindal Steel Ltd.

Target

Motilal Oswal

20 January 2020 JSPs result instills more confidence in the expected steel volume ramp-up with strong 34% YoY standalone volume growth to 1.6mt (+21% QoQ) in 3QFY20. Moreover, the sharp improvement in steel prices over the past two months, coupled with lower coking coal cost, has reinforced the near-term margins outlook. We estimate EBITDA/ton to improve ~30% QoQ to INR11,000/t in 4QFY20. Reiterating with an SOTP-based target price of INR210. EBITDA of INR18.1b (+11% QoQ) in 3QFY20 was 5% above our estimate due to higher volumes in the standalone business. Interest cost declined 3% QoQ to INR10b. Steel sales volumes were strong at 1.6mt (+21% QoQ, +34% YoY). Implied steel realization dropped to INR39,023/t (-16% QoQ), resulting in an EBITDA margin of ~INR8,400/t (-32% YoY, 11% QoQ) weakest in three years. EBITDA stood at INR13.5b (+8% QoQ, -9% YoY due to lower realizations), above our estimate of INR12.

Jindal Steel Ltd. is trading above all available SMAs

Jindal Steel Ltd.

20 Jan 2020

1053.95

-0.82%

Q3FY20 Result Update

Buy: Jindal Steel Ltd.

Target

Prabhudas Lilladhar

JSP reduced debt by ~23% over last four years on the back of improved earnings, strong control on working capital and lean capex. It would continue to reduce debt by 10% for next couple of years as company remains focused on reviving its idle capacity and optimization of capex and working capital. We remain positive on JSP given the strong scope for increase in utilisation of idle steel and power capacity in India, lean capex and continuous reduction...

Jindal Steel Ltd. has an average target of 1050.50 from 8 brokers.

Jindal Steel Ltd.

20 Dec 2019

1053.95

-0.82%

DRI plant restart at Angul to aid growth

Buy: Jindal Steel Ltd.

Target

Motilal Oswal

20 December 2019 With restarting of the cost-efficient DRI plant (using coke oven gas), total metallic availability would increase to ~13,000tpd from Jan20 (from 10,000tpd currently), implying that annual steel production of ~4mnt would be achievable at Angul at a competitive cost. We, therefore, increase our FY21 standalone steel sales volume estimate to 6.2mnt, implying a 10% CAGR in FY19-21E. Lower raw material cost led by decline in coking coal and iron ore costs should partially offset the decline in steel prices seen in the past six months. JSP's power business remains highly underutilized with PLF hovering around 35%. JSP is well placed to secure PPAs as this plays out, which should boost its free cash flows. We expect JSP to generate significant consolidated free cash flow (as major capital expenditure is now behind), which will help reduce leverage INR365b net debt as of Sep19 with ~5x net debt/ EBITDA.

Promoters unpledged 0.20% of shares in last quarter. Total pledge stands at 11.15% of promoter holdings

Jindal Steel Ltd.

03 Dec 2019

1053.95

-0.82%

Order on Sarda mines deferred

Buy: Jindal Steel Ltd.

Target

Motilal Oswal

3 December 2019 The Supreme Court (SC) has deferred its verdict on JSPs case related to the offtake of iron ore from the Sarda mines. JSP though had made payment for ~12mt of iron ore (mainly fines) to Sarda and the state (royalty/taxes), thereby stating its claim on the related ore. JSP cited it sources iron ore fines at INR1,800-2,000/t (ex-mine). Thus, if the company were allowed to lift the 12mt of fines, it will lead to a benefit of INR22- 24b. Thus, availability of this 12mt would provide significant cushion against any possible disruption (accounting for 18-20 months of sourcing from merchant mines). In recent times, JSPLs stock has re-rated (up ~55% over the past two months) on expectations of (a) benefit of coal block allocation (Gare Palma), (b) possible positive verdict on the Sarda mines case and (c) a recovery in steel prices.

Promoters unpledged 0.20% of shares in last quarter. Total pledge stands at 11.15% of promoter holdings

Jindal Steel Ltd.

04 Nov 2019

1053.95

-0.82%

Event Update

Buy: Jindal Steel Ltd.

Recommendation Target

Prabhudas Lilladhar

2014, the block was owned and operated by JSP to meet coal requirement of its sponge iron ore and CPP at Raigarh plant. Benefitted by proximity of mine to its plant and owned infrastructure, JSP was best placed to win the auction. We see the bid as a significant positive development for JSP as this would lower its coal cost by Rs1,300/t (for 6mtpa of coal) along with much needed raw material security in wake of severe shortage of domestic coal. We expect coal block to add Rs46bn (Rs46/share) to the equity value based on...

Promoters unpledged 0.20% of shares in last quarter. Total pledge stands at 11.15% of promoter holdings

Jindal Steel Ltd.

12 Sep 2019

1053.95

-0.82%

Annual Report Analysis

Accumulate: Jindal Steel Ltd.

Recommendation Target

Prabhudas Lilladhar

Net debt fell 8% YoY in FY19: Led by strong operating cash flow (OCF) dues, net debt fell to Rs391bn. Statutory dues (on days basis to sales) reached to 25 days which as significantly higher, compared to its peers. Net debt has fallen by ~15% from peak level of Rs460bn in FY16. Led by stable earnings and lean...

Jindal Steel Ltd. has an average target of 1050.50 from 8 brokers.

Jindal Steel Ltd.

18 Aug 2019

1053.95

-0.82%

Q1FY20 Result Update

Buy: Jindal Steel Ltd.

Recommendation Target

Prabhudas Lilladhar

Company continued to deliver strongly on debt. Net debt fell 4% QoQ/Rs14bn to Rs376bn due to higher FCF generation and proceeds of Rs5bn from conversion of options to shares by promoters. Management expects to maintain Q1 EBITDA margins in domestic steel operations due to lower fall in realisations (due to its better mix inclined towards Rails, structural and beams) than market, offset by reduction in iron ore and coal cost. Street remains doubtful on JSP's ability to generate ample FCF to meet its...

Promoters unpledged 0.20% of shares in last quarter. Total pledge stands at 11.15% of promoter holdings

Is Jindal Steel & Power Ltd. worth buying?

515 Votes:

Buy 75.92%

Sell 16.7%

Hold 7.38%

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