Jindal Steel & Power hits over 4-month high, zooms 60% in one month
Posted on 7th November 2019 |
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Shares of Jindal Steel & Power (JSPL) hit an over four-month high of Rs 150, up 11 per cent on the BSE on Thursday on expectation of raw material benefits led by lower coking coal costs to offset the decline in steel prices in the near term.
The stock of the steel company was trading at its highest level since June 27, 2019. It has rallied 60 per cent in the past one month. In comparison, the benchmark S&P BSE Sensex has gained 8 per cent, while S&P BSE Metal index has climbed 17 per cent during the same period.
JSPL said it has emerged as the highest bidder for Gare IV/1 coal Block (rated capacity 6MTPA) in the recently held coal block auctions at a closing bid of Rs 230/t. This will help in increasing coal availability for the company’s overall operations. It will also help the country in reducing its dependence on coal imports.
Gare Palma IV/1 coal block has the potential to contribute a saving of Rs 1,500/ton with an annual capacity of 6MTPA as per the management, once requisite approvals are in place and the mine ramps up.
Meanwhile, JSPL reported a weak set of numbers for July-September quarter (Q2FY20), by posting a consolidated net loss of Rs 399 crore against net profit of Rs 279 crore in the year-ago quarter. Consolidated turnover declined 10 per cent to Rs 8,939 crore from Rs 9,982 crore in previous year quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) margin contracted by 400 basis points (bps) to 18 per cent from 22 per cent.
Analysts at Antique Stock Broking maintain BUY rating on JSPL with a revised SOTP of Rs 173 (earlier Rs 136) per share factoring in a decline in coal costs from the Gare Palma IV/1 coal block.
SBICAP Securities also maintains ‘buy’ rating on the stock with the target price of Rs 173 per share, as the brokerage firm reiterates that JSPL is still on a deleveraging path driven by the volume ramp-up at Angul.
“Angul continues to ramp up well and outlook for the Power business is also improving. JSPL is L1 in 515MW of bids and expects PPA for 315MW to finalize by Dec’19. Major capex for the company is now behind and along with ramp-up in volumes, FCF generation should continue,” Motilal Oswal Financial Services (MOFSL) said in a result update. The brokerage firm reiterates ‘Buy’ rating on the stock with a target price of Rs 170 based on SOTP.
At 02:46 pm, JSPL was trading 10 per cent higher at Rs 149, as compared to a 0.30 per cent rise in the S&P BSE Sensex. A combined 56 million shares changed hands on the counter on the NSE and BSE so far. |
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Verdict allowing women into Sabarimala not the 'final word': Supreme Court
Posted on 5th December 2019 |
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The Supreme Court on Thursday said its 2018 verdict allowing entry of girls and women of all ages into the Ayyappa temple at Kerala's Sabarimala was not the final word as the matter was referred to a larger bench.
The apex court's observation came when senior advocate Indira Jaising, appearing for a woman devotee, Bindu Ammini, alleged violation of the 2018 verdict and said her client was attacked for her bid to enter the shrine. |
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Hyundai plans to bring fuel cell cars to India, Nexo could be first launch
Posted on 5th December 2019 |
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Korean auto major Hyundai is planning to bring fuel cell electric vehicles to India. The company has already started a feasibility study as part of the plan.
Hyundai Nexo, which is already available in many markets, could be the first launch. The company claims Nexo is the world's first dedicated hydrogen-powered SUV and that it has a range of close to 380 miles, highest for any fuel-cell or electric vehicle in the market. |
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HDFC AMC slips 5% as Standard Life to sell additional stake via OFS
Posted on 5th December 2019 |
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Shares of HDFC Asset Management Company (AMC) dipped 5 per cent to Rs 3,173 in intra-day deals on Thursday, after the company said it will use a greenshoe option for sale of additional 0.86 percent stake via offer for sale (OFS). The stock had ended 3 per cent lower at Rs 3,329 on the BSE a day earlier.
With the past two day's decline, HDFC AMC has corrected 17 per cent from its all-time high of Rs 3,844 touched on November 22, 2019.
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RBI surprise: Repo rate left unchanged; FY20 GDP forecast lowered to 5%
Posted on 5th December 2019 |
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Springing a surprise, the monetary policy committee of the Reserve Bank of India (RBI) maintained the repo rate at 5.15 per cent points (bps) in its fifth bi-monthly monetary policy meeting of the financial year 2019-20 (FY20) on Thursday. However, GDP growth forecast for FY20 was slashed to 5 per cent from 6.1 per cent.
The three-day rate-setting meet started on Tuesday (December 3). In its October meet, the RBI had cut interest rate by 25 bps to 5.15 per cent. |
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Polycab India hits fresh record high; stock zooms 100% from August low
Posted on 5th December 2019 |
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Shares of Polycab India continued their upward journey, and hit a new high of Rs 1,052, up 6 per cent on the BSE on Thursday, on expectation of strong earnings going forward. The company was included in the MSCI Global Small Cap Index with effect from November 26, 2019.
The stock of the fast moving electric goods (FMEG) company zoomed 100 per cent from its recent low of Rs 525, touched on August 22, 2019. |
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