A director at Jindal Steel & Power Limited bought 117,650 shares at 848.539INR and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last ...
JINDAL STEEL & POWER: Management meeting update (JSP IN, Mkt Cap USD4.8b, CMP INR357, TP INR478, 34% Upside, Buy) Cautious near-term demand, but pent-up demand inevitable Near-term demand is tepid and demand decline is seen (especially last month) due to (a) the ban on construction in the NCR region due to severe pollution levels, (b) an extended monsoon, (c) weak sentiment in the international market - consumers are adopting the wait-and-watch policy, and (d) sufficient inventory lying ...
JINDAL STEEL & POWER (IN), a company active in the Steel industry, has received a double requalification by the independent financial analyst theScreener. Its fundamental valuation is now 3 out of 4 stars while its market behaviour can be considered as defensive. theScreener believes that the gain of a star(s) and an improvement in the market risk perception allows upgrading the general evaluation to Slightly Positive. As of the analysis date October 1, 2021, the closing price was INR 401.70 and...
JINDAL STEEL AND POWER: Deleveraging to continue (JSP IN, Mkt Cap USD5.5b, CMP INR400, TP INR495, 24% Upside, Buy) JPL's divestment to support a further decline in debt JSP's 1QFY22 result was strong as expected, with the highest ever EBITDA/t of INR28,098/t (7% above our estimate). However, standalone EBITDA fell 7% QoQ to INR45.3b due to a 16% QoQ decline in volume. Adjusted for the JPL divestment, net debt fell only 4% QoQ to INR152b due to an increase in working capital. We raise ou...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Event The Supreme Court of India allows JSPL to lift 12mt of iron ore inventory lying in mines of Sarda Mines Pvt Ltd (Sarda Mines), however, subject to actual payment of penalty dues of ~Rs9.33bn by Sarda Mines. Today, JSPL management on media confirmed that Sarda Mines has paid the dues to Odisha Govt. Details JSPL used to procure iron ore from Sarda Mines Ltd. till Mar, 2014. Post that, Odisha’s Directorate of Mines ordered closure of Sarda mines owing to expiry of EC and excess mining. ...
Q3FY20 result highlights – in-line operating results Jindal Steel and Power (JSPL IN) reported in-line consolidated EBITDA of Rs18.2bn, up 11% qoq JSPL standalone recorded EBITDA of Rs13.5bn, up 8% qoq on the back of ~21% qoq higher volumes (1.61mt) led by restocking demand and higher exports (300,000t+). The company benefitted from lower coking coal prices and operating leverage at Angul plant. As a result, lower realisation (down by ~Rs3,500/t) was partly offset and EBITDA/t stood at Rs8,...
(JSP IN, Mkt Cap USD2.6b, CMP INR179, TP INR210, 17% Upside, Buy) ** JSP’s result instills more confidence in the expected steel volume ramp-up with strong 34% YoY standalone volume growth to 1.6mt (+21% QoQ) in 3QFY20. ** Moreover, the sharp improvement in steel prices over the past two months, coupled with lower coking coal cost, has reinforced the near-term margins outlook. We estimate EBITDA/ton to improve ~30% QoQ to INR11,000/t in 4QFY20. Reiterating Buy with an SOTP-based target price o...
EM Remains In Favor; Shanghai Comp Breaking Out A weakening US dollar (DXY) continues to be a major tailwind for both EM equities and the commodity Sectors. Improving price and RS trends for these risk-on areas of the market are among the many characteristics consistent with historical bull markets. Therefore, we continue to label this a bull market and we believe global equities are still in the early innings of a broad-based advance. • EM Equities. Price action has remained weak for the US...
Jindal Steel & Power: DRI plant restart at Angul to aid growth (JSP IN, Mkt Cap USD2.3b, CMP INR157, TP INR184, 17% Upside, Buy) We visited Jindal Steel and Power's (JSP) Angul plant. Production ramp-up at Angul continues and is the key driver of volume growth this year (up 12% YoY in 1HFY20). The next leg of growth at Angul is expected to be driven by recommencement of production at the 1.8mtpa DRI plant (by end-Dec'19), which would use the rich gas produced by the coke oven batteries....
Jindal Steel & Power: Order on Sarda mines deferred (JSP IN, Mkt Cap USD2.1b, CMP INR150, TP INR175, 17% Upside, Buy) The Supreme Court (SC) has deferred its verdict on JSP’s case related to the offtake of iron ore from the Sarda mines. As a backdrop, we note that operations at the Sarda mines have been shut since 2014. 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. This claim has been ch...
JINDAL STEEL AND POWER: Lower volumes for Indian steel business drives miss; Steel business ramping up (JSP IN, Mkt Cap USD1.9b, CMP INR135, TP INR170, 26% Upside, Buy) 2QFY20 consolidated EBITDA at INR16.4b (-24% QoQ) came in 5% below our estimate on lower volumes in the standalone business. Interest cost declined 7% QoQ to INR10.3b. Cash profit (pre-tax and MI) decreased 43% QoQ to INR6.1b. PAT loss stood at INR3b (vs. our est.: INR4.7b). Net debt (excl. acceptances) reduced ~INR11b to INR3...
Q2FY20 result – in-line operating results Jindal Steel and Power (JSPL IN) reported in-line consolidated EBITDA of Rs16.4bn, down 24% qoq. Jindal Steel and Power (JSPL IN)’s domestic presence and minimum exposure to automotive sector helped JSPL to record 5% yoy growth in sales volumes to 1.33mt in Q2FY20 (compared to volume de-growth of 6-10% yoy of peers). Though, steel realisation could have fallen by Rs2,000-2,5000/t qoq, derived blended realisation (net sales/volume) was flat qoq at Rs4...
Event Jindal Steel and Power (JSPL) emerges as the highest bidder in the Gare Palma IV/1 coal block auction held on 4th Nov, 2019 at a premium of Rs230/t. The coal block has capacity of 6mtpa. Details JSPL can effectively replace 6mt expensive e-auction coal with the currently acquired coal block. The company can sell upto 25% of coal in the open market at a Coal India’s notified price by paying 15% more premium on the bid price. Approx 4.5mt coal can be used in JSPL standalone business while...
JSPL stands out within our steel universe coverage on projected earnings growth over FY19-21E. The company will continue to post volume growth and deleverage its balance sheet, albeit with a drag, notwithstanding the weak macro environment. JSPL’s earnings could bottom out in Q2FY20 and we estimate a pick-up in volumes Q3FY20 onwards, fuelled by government’s measures to improve liquidity. Meanwhile, accruing benefits from lower raw material (RM) costs should propel earnings Q3FY20 onwards. Also,...
Q1FY20 result – Cost reduction offsets lower prices Jindal Steel and power (JSPL IN)’s Q1FY20 result highlights the potential of operating efficiencies which can be generated in course of ramping up the steel plant. It reported better-than-expected consol EBITDA of Rs21.7bn (IDFCe: Rs18.4bn), up 18% qoq. This was primarily due to much lower CoP (down ~Rs2,100/t qoq) in steel business in India. JSPL’s standalone operations reported EBITDA of Rs16.1bn (vs IDFCe: Rs13.7bn), up 12% qoq. This was...
Q4FY19 result – lower debt; volume growth offset by lower prices Jindal Steel and power (JSPL IN) reported lower-than-expected consol EBITDA of Rs18.4bn (IDFCe: Rs21.3bn), down 11% qoq. This was due to lower-than-expected steel realisation and losses in overseas operations. JSPL’s standalone operations reported EBITDA of Rs14.34bn (vs IDFCe: Rs15.4bn), down 3% qoq despite 21% qoq higher steel volumes (1.45mt). This was due to fall in steel realisations (down by ~Rs2,800/t). Adverse effect of...
Jindal Steel and Power: Subsidiary performance and exceptions drag 4Q; Steel business ramping up, power outlook improving; Reiterate Buy (JSP IN, Mkt Cap USD2.1b, CMP INR152, TP INR217, 43% Upside, 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 ...
Event Jindal Steel and Power’s (JSPL) subsidiary, Jindal Power (JPL) has been declared as L1 bidder for 515MW three year medium-term power purchase agreement (PPA) Details The tariff discovered under the bid is Rs4.41/unit and PPA is expected to be finalised soon. The auction was conducted by PFC (nodal agency) and NHPC is the aggregator responsible for signing PPAs with successful bidders and power sale agreements (PSA) with willing distribution companies (DISCOMS). The bid parameters wer...
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