Prefer Sesa Goa & NMDC over JSPL: Phani Sekhar

Phani Sekhar of Angel Broking told CNBC-TV18, "I guess one will see real meaningful uptake at the operating level for Jindal Steel & Power in the next 12-18 months, which will make it a free cash positive company. But the kind of industry that it is in and the demand drives being so weak it is very difficult to take a secular call over the next one and half to two years and then hold the stock in expectation that it will give you these kind of returns."

"The valuations are not really cheap despite the correction that we have seen, but still trading at about 6 times EV/EBITDA next year considering the 30 percent growth in the operating profits that one takes because of the new expansion that is coming on stream. The 6 times EV/EBITDA is to my mind is more than fair valuation and there is significant room for it to correct. It is a good idea for the investor to book out and then look at some other sectors or Sesa Goa or NMDC in the same space might be a good idea." he added.