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Last Updated : May 26, 2019 03:49 PM IST | Source: Moneycontrol.com

Accumulate Jindal Steel and Power; target of Rs 171 Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Jindal Steel and Power with a target price of Rs 171 in its research report dated May 24, 2019.

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Prabhudas Lilladher's research report on Jindal Steel and Power


Jindal Steel & Power (JSP) reported Q4FY19 earnings below our estimates due to weaker-than-expected realisations in domestic steel operations and Jindal Power (JPL). Also, domestic steel unitary EBITDA margins fell 17%/Rs1,600/t QoQ (down 23%/Rs2,860/t) to Rs9,590 (PLe: Rs9,845), due to weaker than expected realisations. Angul (BF +BoF) steel operations stabilized in Q4FY19 with 88-90% utilisation levels.


Outlook


Given the weak operating performance and fall in realisations, we cut our EBITDA estimates by 0.9% for FY21E. We downgrade our rating to Accumulate (earlier BUY) with TP of Rs171 (earlier Rs210), EV/EBITDA of 5.5x (earlier 6x) FY21e.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on May 26, 2019 03:49 pm
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