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 May 24, 2017.
Edelweiss' research report on Jindal Steel & Power
Jindal Steel & Power's (JSPL) consolidated Q4FY17 EBITDA at INR 15.5bn (up 73% YoY) surpassed consensus primarily on better performance of overseas subsidiaries. We believe, EBITDA CAGR of 32% over FY17-19E will be led by volume ramp up at domestic and international operations despite power PLF remaining at 35% on an average.
However, taking cognizance of the delay in commissioning of the blast furnace at Angul, we revise FY18E EBITDA down 9%, while maintaining FY19E EBITDA. Maintain ‘BUY’ with revised TP of INR 155 (earlier INR 160), implying an exit multiple of 6x.
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