Prabhudas Lilladher is bullish on Jindal Steel and Power has recommended buy rating on the stock with a target price of Rs 305 in its research report dated August 10, 2018.
Prabhudas Lilladher's research report on Jindal Steel and Power
Jindal steel & Power (JSP) reported Q1FY19 earnings in line with our estimates. Domestic operations posted EBITDA/t of Rs13,000 (PLe:Rs13,000), highest in the industry based on results announced so far. However, ramp-up of Angul plant remained below our expectation due to issues with caster and logistics bottlenecks. This led us to cut our domestic volume estimates by 12%/9% for FY19e/FY20e to 5.3mn/5.9mn tonnes (t). However, our earnings estimates remain unchanged due to commensurate increase in EBITDA/t to Rs12,200/Rs12,010.
We reiterate BUY with TP of Rs305, EV/EBITDA of 6.5x FY20e.
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