Antique Stock Broking maintains buy on JSPL, target price Rs 136

Antique Stock Broking has maintained buy rating on Jindal Steel & Power in the long term with a target price of Rs 136. The stock ended up 12.74% at Rs 107.50 on Wednesday while the BSE Sensex closed 125.37 up at 37,270.82.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 9945.58 crore, down -2.10 % from last quarter sales of Rs 10158.95 crore and up 2.90 % from last year same quarter sales of Rs 9665.35 crore. The company has reported net profit after tax of Rs -87.40 crore in the latest quarter.

Investment Rationale


Steel profits would be aided with ramp up of volumes at Angul, lower coking coal costs and value-added product mix, said Antique. Leverage levels would continue to improve driven by operational free cash flows, the brokerage said. Antique has valued the stock at 5.2 times its FY2021 estimated earnings for the steel business and free cash flow to equity-based valuation for the power business.