Buy Jindal Steel & Power, target price Rs 1,215: ICICI Securities

ICICI Securities has a buy call on Jindal Steel & Power with a target price of Rs 1215. The current market price of JSPL is Rs 918.6. Jindal Steel & Power, incorporated in 1979, is a Mid Cap company with a market cap of Rs 93623.69 Crore) operating in Metals - Ferrous sector.

Jindal Steel & Power's key products/revenue segments include Iron & Steel Items, Other Operating Revenue, Scrap and Export Incentives for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 11248.14 crore, down -17.61% from last quarter Total Income of Rs 13652.33 crore and down -8.42% from last year same quarter Total Income of Rs 12282.04 crore. The company has reported net profit after tax of Rs 860.47 crore in the latest quarter.

The company's top management includes Mrs.Savitri Jindal, Dr.Bhaskar Chatterjee, Mrs.Shivani Wazir Pasrich, Mr.Rohit Kumar, Ms.Kanika Agnihotri, Mr.Damodar Mittal, Mr.Sabyasachi Bandyopadhyay, Mr.Bimlendra Jha, Mr.Naveen Jindal, Mr.Sunjay Kapur. Company has Lodha & Co. as its auditors. As on 30-09-2024, the company has a total of 102 crore shares outstanding.

Investment Rationale
Domestic HRC prices in the traders' market have risen by Rs 200-300/te on average post the commencement of safeguard duty investigations into steel imports. In our view, Q4FY25 might come as a respite for steel prices as: 1) India has turned net exporter in Nov'24, for the first time after Mar'24; 2) BIS certification renewals of key exporters are still pending; 3) consumption of flats rose 13% YoY in Nov'24, alleviating the dull longs consumption growth; and 4) imports bookings are on a decline, indicating relatively less pressure in the seasonally strong Q4FY25. ICICI Securities maintains a positive outlook on ferrous with Jindal Steel & Power (JSPL) with a BUY call and a target price of Rs 1,215).

Promoter/FII Holdings
Promoters held 61.19 per cent stake in the company as of 30-Sep-2024, while FIIs owned 12.19 per cent, DIIs 16.04 per cent.