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    Buy Jindal Steel & Power, target price Rs 750: ICICI Securities

    Synopsis

    Expect lower sales volume QoQ owing to subdued demand until Nov-22. Realisation is likely to be down by Rs2,000/t QoQ. Limited benefit of lower coking coal prices due to DRI route and partial self-sufficiency. Overseas subsidiaries are unlikely to show higher volumes.

    Jindal Steel and PowerET Bureau & Agencies
    Shares of the company ended 2% higher at Rs 552.6 after the metal player said it will spend Rs 7,930 crore under the PLI scheme for specialty steel to manufacture eight types of high-end alloy in the country.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
    ICICI Securities has buy call on Jindal Steel & Power with a target price of Rs 750. The current market price of Jindal Steel & Power is Rs 602.1.


    Jindal Steel & Power, incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 61506.21 Crore) operating in Metals - Ferrous sector.

    Jindal Steel & Power 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 13521.88 Crore, up 3.46 % from last quarter Total Income of Rs 13069.17 Crore and down -.69 % from last year same quarter Total Income of Rs 13615.49 Crore. Company has reported net profit after tax of Rs 219.29 Crore in latest quarter.

    The company’s top management includes Mrs.Savitri Jindal, Mr.Sunil Kumar Agrawal, Ms.Kanika Agnihotri, Mrs.Shivani Wazir Pasrich, Mr.Sunjay Kapur, Dr.Bhaskar Chatterjee, Dr.(Mrs.)Aruna Sharma, Mr.D K Saraogi, Mr.Naveen Jindal, Mr.Ramaswamy Ramkumar. Company has Lodha & Co. as its auditors. As on 30-06-2022, the company has a total of 102 Crore shares outstanding.

    Investment Rationale
    Expect lower sales volume QoQ owing tosubdued demand until Nov-22. Realisationis likely to be down by Rs2,000/t QoQ.Limited benefit of lower coking coal pricesdue to DRI route and partial self-sufficiency.Overseas subsidiaries are unlikely to showhigher volumes.

    Promoter/FII Holdings
    Promoters held 60.44 per cent stake in the company as of 30-Jun-2022, while FIIs owned 10.65 per cent, DIIs 15.75 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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