Buy Jindal Steel & Power, target price Rs 467: Centrum Broking

Centrum Broking has buy call on Jindal Steel & Power with a target price of Rs 467. The current market price of Jindal Steel & Power is Rs 350.65. 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 35856.10 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 30-06-2022, the company reported a Consolidated Total Income of Rs 13069.17 Crore, down -8.87 % from last quarter Total Income of Rs 14341.91 Crore and up 22.79 % from last year same quarter Total Income of Rs 10643.17 Crore. Company reported net profit after tax of Rs 2770.92 Crore in latest quarter.

Investment Rationale
Q2FY23 earnings is expected to be lower (by ~Rs5,000 to ~Rs12,000/t) QoQ amid lower steel prices, full effect of export taxes and higher thermal coal prices, marginally offset by lower coking coal and iron ore prices. JSPL’s focus is on completing its ongoing steel expansion and start of its thermal coal mines which will help in reducing cost structurally from FY24 onwards. Reiterate BUY with TP of Rs467.

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.