ICICI Securities research report on Jindal Steel and Power
JSPL’s Q4FY20 operational print was in-line with consolidated EBITDA of Rs22.2bn (I-Sec: Rs21.9bn). While Jindal Power’s (JPL) EBITDA surprised on the back of higher-than-expected production, standalone steel business witnessed volume miss on account of Angul blast furnace’s closure. Steel realisation and EBITDA/te performance was higher than expected with ~Rs3,200/te QoQ increase. Net debt continues to decrease with cashflow suggesting Rs11.8/40.37bn of deleveraging in H2/FY20.
We maintain BUY with an unchanged target price of Rs213/share.
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