Discussions

JINDAL STEEL & POWER LTD. stock discussion

Oct 3

Jindal Steel and Power Ltd view for Intraday 3rd October #JINDALSTEL
Buying may witness above 1043
Support area 1035. Below ignoring buying momentum for intraday
Selling may witness below 1025
Resistance area 1035
Above ignoring selling momentum for intraday

Sep 10

Swing Stock
#Jindal steel
1. Isne apne trendline ko break kar diya hai.
2. Daily & weekly RSI bhi positive hai.
3. Stock apna downward trend khatm karke uptrend chalu kar raha hai.
4. Support zone se recover kar raha hai.
5. Company ko Vande Bharat train ke liye badhiya order bhi mila hai.
Buy - 962
Target - 1050
SL - 930

Apr 24

Metals move was good, can expect pull back entries.

Sep 30, 2023

Capex to enhance crude steel capacity by ~65% to 15.9mt by FY25

JSP plans to incur a significant capex to enhance its crude steel capacity to 15.9mt from
current 9.6mt and strengthen raw material integration and product enrichment. The
planned capex could result in volume growth and a reduction in structural costs.

With the planned capex, JSP will increase its flat steel capacity to 7.7mt from 2.2mt
to cater to automotive and high-tensile steel, thereby enhancing its product mix.

In 1QFY24, the company signed a mining lease for Gare Palma IV/6 and Utkal C,
with total R&R of ~363mt and EC of ~7.4mt p.a. JSP has already entered the Gare
Palma IV/6 mines and is in the final stage of entering Utkal-C mines. After the two
mines become operational, they will fulfill ~50% of JSP’s thermal coal requirement,
thereby reducing its dependence on the import of coal and merchant mines.

JSP over last few years has shifted its focus to high-margin VAP (~65% of sales).
This has helped the company strengthen its product offering across the value chain
and improve realizations.

The company has followed a prudent deleveraging policy to strengthen its balance
sheet. With net debt of ~INR68b in 1QFY24 and a net debt-to-EBITDA ratio at a
comfortable level of 0.75x, JSP has one of the strongest balance sheets among the
domestic manufacturers. The stock trades at 4.8x FY25E EV/EBITDA.

Key downside risk: Delay in the commissioning of the Angul plant and coal mines
may delay growth and margin improvement.