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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RIL net debt to dip with rights issue, Jio stake sale: Morgan Stanley
Posted on 3rd July 2020 |
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Asset monetisation in Jio Platforms along with the $7 billion rights issue should reduce Reliance Industries Limited's (RIL) net debt by more than half, according to a report by Morgan Stanley.
It said that multiple catalysts are in play with faster than expected deleveraging, improving demand and margin outlook on refining and chemicals, top quartile earnings CAGR of 23 per cent over F20-23, and digitisation, supporting multiples. |
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UP Police eliminates two criminals involved in killing of eight cops in Kanpur
Posted on 3rd July 2020 |
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The Uttar Pradesh Police on Friday eliminated two criminals who were allegedly involved in the killing of eight police personnel in Kanpur, Inspector General, Kanpur informed.
During a combing operation following last night's encounter, two police personnel were injured and two criminals have been neutralised, Mohit Agarwal, IG Kanpur told mediapersons. |
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Intel Capital invests Rs 1,894 crore for a 0.39% stake in Jio Platforms
Posted on 3rd July 2020 |
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Intel Capital will invest Rs 1,894.50 crore in Reliance Industries' Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion for a 0.39 per cent stake, said the two companies on Friday.
This will be the twelfth international deal for Reliance's digital arm in less than three months, taking the total investment amount to Rs 117,588.45 crore. |
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JSW group will bring down China imports to zero in 2 years: Parth Jindal
Posted on 3rd July 2020 |
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As the clamour to boycott Chinese products grows amid a stand-off between the Indian and Chinese armies in eastern Ladakh, several companies have indicated they would cut imports from the neighbouring country and support the government’s self-reliance theme.
Parth Jindal, managing director of JSW Cement, said on Thursday that the JSW group, promoted by his family, would be bringing down its imports from China to zero within two years. |
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