Buy Jindal Steel & Power, target price Rs 483: Centrum Broking

Centrum Broking has buy call on Jindal Steel & Power with a target price of Rs 483. The current market price of Jindal Steel & Power is Rs 378.15. 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 38544.03 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 31-03-2022, the company reported a Consolidated Total Income of Rs 14341.91 Crore, up 14.41 % from last quarter Total Income of Rs 12535.35 Crore and up 20.48 % from last year same quarter Total Income of Rs 11903.59 Crore. Company reported net profit after tax of Rs 2207.18 Crore in latest quarter.

Investment Rationale
The brokerage expects lower volume, higher coal prices should offset higher steel prices in Q1FY23 and JSPL should record marginal decrease in adj EBITDA/t QoQ in Q1FY23. With sale of Jindal Power being concluded, JSPL becomes pure play steel company with focus on India operation. The commissioning of coal mines and expansion of steel plant by FY25 is positive for JSPL. Reiterate BUY with TP of Rs483.

Promoter/FII Holdings
Promoters held 60.45 per cent stake in the company as of 31-Mar-2022, while FIIs owned 9.7 per cent, DIIs 17.34 per cent.