Buy JSPL at around Rs 320-325: Agarwal

Rajesh Agarwal, Eastern Financiers is of the view that one can buy JSPL at around Rs 320-325.

Agarwal told CNBC-TV18, “I believe there would be some amount of short term pressure in Jindal Steel & Power (JSPL) because of the poor numbers which the company has reported in the last quarter because of calling off of Bolivian projects and the issue of coal blocks which is having an overhang. But going by the fundamentals I think it can settle around Rs 320-325 levels where it’s a good buy considering the fact that it is one of the largest producer of coal based sponge iron in the world.” He further added, “Not to forget the 1000MW power capacity which they have and more than 4300MW capacity of power which is under different stages of implementation. Even on valuation parameters it’s trading at a PE of less than 10 which I think is quite attractive considering the fact that they have the strategic resources of their own maybe its coal or iron ore not only in India but also abroad so I would suggest hold on to the stock.”