The shares of Jindal Steel & Power Limited (JSPL) opened their trading session today at Rs 558 and currently trade at Rs 573. The scrip witnessed an intra-day high price of Rs 581.15 indicating a gain of around 7 percent compared to the previous closing levels of Rs 544.20. The company has a market capitalization of Rs 58,333 crores.
Such a jump in the stock price today is observed after the famous brokerage, Kotak Institutional Equities, upgraded the company’s tag from ‘reduce’ to ‘buy’.
Moreover, the brokerage increased the fair value of the stock from Rs 580 to Rs 740 representing an upside of around 28 percent compared to the current levels. The brokerage has listed some reasons justifying the upside, some of which are explained later in the article.
Firstly, the projects taken over by the company will be commissioned in the second half of FY22-23 aiding in increasing the revenues and moreover, improving the margins. In addition to the above, it expects the company to maintain low leverage ratios such as net debt/EBITDA.
Last week, the company, through a regulatory filing with the BSE, informed that its Board has approved the restructuring of the balance sheet of Jindal Steel & Power (Mauritius) Limited (JSPML), the company’s wholly-owned subsidiary.
According to the shareholding data available for the March 2023 quarter, Promoters of the company hold a 61.2 percent stake, and Foreign Institutional Investors (FIIs) hold a 13.42 percent stake in the company.
Jindal Steel & Power Limited is a company based in India that is engaged in the business of steelmaking, mining, power generation, and infrastructure sectors. The company generates a majority of its revenue from domestic operations within India.
Written by Amit Madnani
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