Buy Jindal Steel; target of Rs 425: Agarwal

Rajesh Agarwal of Eastern Financiers is of the view that one can buy Jindal Steel and Power with a target of Rs 425.

Agarwal told CNBC-TV18, “One should buy Jindal Steel and Power with a one year price target of Rs 420-425 due to the fact that this is the largest coal based manufacturer in the world with 1.37 metric tonnes per annum capacity. And they have a structural advantage of having all the integration of captive coal and captive iron ore. Even the power ventures they are doing well although this quarter the power numbers were down because of maintenance shutdown. But with the kind of capacity they have, 1000 Megawatt operational and 4800 MW in different stages of completion, this is a very good stock to be into. Even on valuation parameters it is trading at a PE of less than 8 which is quite attractive considering the fact that major part of their revenue and bottom-line comes from power. We have a price target of Rs 425 in one year time horizon on this stock.”