Morgan Stanley overweight on Jindal Steel and Power, target price Rs 174

Morgan Stanley has an overweight rating on Jindal Steel and Power in the long term with a target price of Rs 174. Shares of Jindal Steel ended up 4.3% at Rs 173.40 on Thursday while BSE Sensex closed 320.62 points up at 41,626.64.

Company Financials

For the quarter ended 30-09-2019, the company has reported cosolidated sales of Rs 8939.47 crore, down -10.12 % from last quarter sales of Rs 9945.58 crore and down -9.90% from last year same quarter sales of Rs 9921.81 crore. The company has reported net profit after tax of Rs -399.31 crore in the latest quarter.


The company’s top management includes Mr.Anjan Barua, Mr.Arun Kumar Purwar, Mr.D K Saraogi, Mr.Hardip Singh Wirk, Mr.Naveen Jindal, Mr.R V Shahi, Mr.Sudershan K Garg, Mr.V R Sharma, Mrs.Aruna Sharma, Mrs.Savitri Jindal, Mrs.Shallu Jindal. Company has Lodha & Co. as its auditors. As on 30-09-2019, the company has a total of 1,020,015,971 shares outstanding.

Investment Rationale

Jindal Steel reported standalone volume of steel and related products of 1.66 MT in Q3. The brokerage estimates volume for crude steel equivalent would be 1.5-1.6 MT which implies growth of 30% YoY. With this volume, the company is well placed to deliver FY20 standalone volumes in line to better than estimate of 5.9 MT, said Morgan Stanley.