Jindal Steel & Power Ltd. share price target and research reports

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

Jindal Steel & Power Ltd.

20 Dec 2019

931.45

-1.31%

DRI plant restart at Angul to aid growth

Buy: Jindal Steel & Power 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.

Number of FII/FPI investors decreased from 548 to 539 in Mar 2025 qtr

Jindal Steel & Power Ltd.

03 Dec 2019

931.45

-1.31%

Order on Sarda mines deferred

Buy: Jindal Steel & Power 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.

Jindal Steel & Power Ltd. is trading above its 200 day SMA of 915.4

Jindal Steel & Power Ltd.

04 Nov 2019

931.45

-1.31%

Event Update

Buy: Jindal Steel & Power 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...

Number of FII/FPI investors decreased from 548 to 539 in Mar 2025 qtr

Jindal Steel & Power Ltd.

12 Sep 2019

931.45

-1.31%

Annual Report Analysis

Accumulate: Jindal Steel & Power 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 & Power Ltd. is trading below its 30 day SMA of 937.7

Jindal Steel & Power Ltd.

18 Aug 2019

931.45

-1.31%

Q1FY20 Result Update

Buy: Jindal Steel & Power 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...

Number of FII/FPI investors decreased from 548 to 539 in Mar 2025 qtr

Jindal Steel & Power Ltd.

24 May 2019

931.45

-1.31%

Jindal Steel & Power Ltd

Buy: Jindal Steel & Power Ltd.

Target

Angel Broking

Given the ongoing global trade concerns, we expect steel prices to remain volatile along with increasing iron ore prices due to Vale incidence. However, we project that domestic demand will continue to remain positive for steel and power sectors on long term basis, and expect JSPL to perform well in coming years along with the

Number of FII/FPI investors decreased from 548 to 539 in Mar 2025 qtr

Jindal Steel & Power Ltd.

24 May 2019

931.45

-1.31%

Q4FY19 Result Update

Accumulate: Jindal Steel & Power Ltd.

Recommendation Target

Prabhudas Lilladhar

17%/Rs1,600/t QoQ (down 23%/Rs2,860/t) to Rs9,590 (PLe: Rs9,845), due to weaker than expected realisations. Angul (BF +BoF) steel operations stabilized in Q4FY19 with 88-90% utilisation levels. Given the weak operating performance and fall in realisations, we cut our EBITDA estimates by 0.9% for FY21E. We downgrade our rating to...

Jindal Steel & Power Ltd.'s price crossed below 30Day SMA today

Jindal Steel & Power Ltd.

22 May 2019

931.45

-1.31%

Subsidiary performance and exceptions drag 4Q

Buy: Jindal Steel & Power Ltd.

Target

Motilal Oswal

Steel business ramping up, power outlook improving; Reiterate Buy 4QFY19 consolidated EBITDA at INR18.5b (-11% QoQ) came in 12% below our estimate due to (1) higher coal costs for Jindal Power, (2) low margins at Oman Steel, and (3) shutdown at Wongawalli mine. Interest cost increased 11% QoQ to INR11.6b on rising interest rates and LC discounting. Cash PAT (pre-tax and MI) declined 35% QoQ to INR6.8b (v/s. our estimate of INR10.6b). Non-cash exceptions drag reported performance: JSP incurred write-offs of INR17.3b related to (1) additional coal penalty (INR13.5b), (2) electricity duty...

Number of FII/FPI investors decreased from 548 to 539 in Mar 2025 qtr

Jindal Steel & Power Ltd.

19 Mar 2019

931.45

-1.31%

Angul progressing well on production

Buy: Jindal Steel & Power Ltd.

Motilal Oswal

For running the DRI plant at full capacity, production at 5-6 units of CGP will have to be ramped up. In contrast, if coal were made available from its erstwhile captive mine (de- allocated in 2014), the receiving time (post production) would be ~12 hours and cost of gas production would have been USD3-4/mmbtu. DRI plant has restarted in Mar19 and is operating at a run-rate of ~1mtpa (3,000tpd at 50% utilization). JSP plans to increase the DRI utilization run-rate to ~80-85% by Sep19. JSP has started using surplus coke oven gases (two coke oven batteries commissioned last year) in DRI production. The third coke oven battery is likely to be commissioned in FY20. Usage of coke oven gases in DRI production is likely to increase. Coke oven acts as a cost-effective substitute to syngas (gas obtained from CGP).

Jindal Steel & Power Ltd.'s price crossed below 30Day SMA today

Jindal Steel & Power Ltd.

07 Feb 2019

931.45

-1.31%

Jindal Steel & Power Ltd

Buy: Jindal Steel & Power Ltd.

Target

Angel Broking

Outlook & Valuation: Given the ongoing global trade concerns, we expect steel prices to remain range bound. However, we project that domestic demand will continue to remain positive for steel and power sectors on long term basis, and expect JSPL to perform well in coming years along with the ramp up of Angul plant and

Jindal Steel & Power Ltd. is trading above its 200 day SMA of 915.4

Is Jindal Steel & Power Ltd. worth buying?

509 Votes:

Buy 76.03%

Sell 16.7%

Hold 7.27%

RESEARCH REPORTS

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