Jindal Steel & Power Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 40846.54 Crore) operating in Metals – Ferrous sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 10643.17 Crore, down -10.59 % from last quarter Total Income of Rs 11903.59 Crore and up 14.67 % from last year same quarter Total Income of Rs 9281.88 Crore. Company reported net profit after tax of Rs 14.25 Crore in latest quarter.
Investment Rationale
Jindal Steel & Power (JSPL) becomes the first entity with zero domestic net debt in Indian steel coverage. Current net debt of Rs150bn can be attributed to foreign operations. With divestment of JPL, the brokerage sees a significant scope of RoE expansion. It increases target P/B to 1.5x from 0.9x earlier. Book value will reduce post the JPL deal.
Promoter/FII Holdings
Promoters held 60.5 per cent stake in the company as of June 30, 2020, while FIIs held 10.6 per cent, DIIs 14.4 per cent and public and others 14.5 per cent.
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