The shares of Jindal Steel & Power Limited closed today at Rs 581.95, gaining about 2.50 percent compared to the previous closing levels of Rs 567.70. It has a market capitalization of Rs 59,364 crores.
The latest consolidated financials of the company portray an operating revenue of Rs 52,711 crores as compared to Rs 51,085 crores of revenues in the previous financial year. The net profit figures, on a contrasting note, saw a sharp fall in numbers which were recorded from Rs 8,248 crores during FY21-22 to Rs 3,974 crores in FY22-23.
As a result of the above, the profitability metrics witnessed effects with the return on equity (ROE) slipping from 16.14 percent during FY1-22 to 8.19 percent in FY22-23. Moreover, the return on capital employed (ROCE), keeping the timeframe the same, went down from 24.96 percent to 13.53 percent.
Having a positive outlook, Kotak Securities, a well-known brokerage, gave a ‘Buy’ recommendation for the stock with a target price of Rs 740 indicating an upside of around 27 percent as compared to the current price levels prevailing in the market.
The rationale behind providing such a recommendation is pertaining to an edge Jindal Steel & Power enjoys as a leading integrated steel manufacturer, acquiring power assets paving the way for cost synergies, etc.
The shareholding data, as per the March 2023 quarter, represents the Promoters holding a 61.2 percent stake (36.43 percent pledged), and Foreign Institutional Investors (FIIs) holding a 13.42 percent stake in the company.
Jindal Steel & Power Limited is a company based in India that is engaged in the process of steelmaking, mining, power generation, and many other sectors. The company generates a majority of its revenue from domestic operations within the country.
Written by Amit Madnani
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