Bullish on JSPL: Tarang Bhanushali, IIFL

In a chat with ET Now, Tarang Bhanushali, Metal Analyst, IIFL gives his views on JSPL


The stock were just shot down in trade the last two or three sessions and that is JSPL, the CAG report definitely having that impact but what do you do now, fundamentally there are lot of reports which came out, which spoke about the base case scenario for JSPL assuming all the negatives and the targets thereof, what is the IIFL view on JSPL in particular?

We are quite bullish on JSPL considering the growth plans it has over the next two year with power capacities coming in this financial year and the new steel plant coming in the next. We believe that earnings would receive boost from this too and again with the raw material integration they have, their profits would be stay around 40% at the OPM level and hence we believe that it is one of the better stocks in the steel space to be owned considering that it has a major exposure to long products and we have seen long products remain quite stable at the moment with lower imports. We believe that JSPL would be one of the better bets in the steel space at the moment.