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    Buy Jindal Steel & Power, target price Rs 543: Equirus Securities

    Synopsis

    Jindal Steel & Power Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 31421.59 Crore) operating in Metals - Ferrous sector.

    Jindal Steel & PowerAgencies
    Promoters held 60.48 per cent stake in the company as of March 31, 2020, while FIIs held 13.40 per cent, DIIs 12.35 per cent and public and others 13.77 per cent.
    Equirus Securities has buy call on Jindal Steel & Power with a target price of Rs 543. The current market price of Jindal Steel & Power Ltd. is Rs 307.25.

    Jindal Steel & Power Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 31421.59 Crore) operating in Metals - Ferrous sector.

    Financials
    For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 10898.70 Crore, up 19.28 % from last quarter Total Income of Rs 9137.43 Crore and up 17.19 % from last year same quarter Total Income of Rs 9299.82 Crore. Company reported net profit after tax of Rs 2566.68 Crore in latest quarter.

    Investment Rationale
    JSP remains the cheapest stock in the sector, trading at 4.1x/3.8x FY22/FY23E EV/EBITDA. The valuation discount vs. the Indian metals sector is not justified. Historically, the higher beta vs. peers made sense when JSP had heavy debt on its books (net debt/EBITDA at 13.4x in FY16).

    Promoter/FII Holdings
    Promoters held 60.48 per cent stake in the company as of March 31, 2020, while FIIs held 13.40 per cent, DIIs 12.35 per cent and public and others 13.77 per cent.



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    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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