Edelweiss is bullish on Jindal Steel & Power has recommended buy rating on the stock with a target price of Rs 155 in its research report dated June 07, 2017.
Edelweiss' research report on Jindal Steel & Power
Commissioning of the Angul furnace is a major milestone for JSPL and we envisage it to propel the company’s domestic volume 50% YoY to 5mt. It will also enable optimal capacity utilisation of the plate (1mtpa) & upcoming bar (1.4mtpa) mills at Angul and wire rod (0.6mtpa) & bar (1mpta) mills at Patratu.
We are upbeat on management’s intention to utilise incremental cash flow to prune debt. While there are certain legal challenges, management does not expect them to impact the business. We keep our estimates unchanged and maintain ‘BUY’ with TP of INR 155, implying exit multiple of 6x FY19E EBITDA.
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