Kotak Securities's Pick: Buy Jindal Steel & Power with Target ₹ 795

Kotak Securities has buy call on Jindal Steel & Power at current market price of Rs 776.55. The target price of Jindal Steel & Power is Rs 795.

About Jindal Steel & Power:

Jindal Steel & Power (JSPL) is a leading Indian steel and power company listed on the National Stock Exchange of India (NSE). It operates in the iron and steel, mining, and power sectors. The company has a presence in 13 countries across four continents. JSPL produces a wide range of steel products, including long steel products, flat steel products, and rails. It also produces thermal power, captive power, and renewable energy. With a production capacity of 11 million tons of crude steel per year, JSPL is among the top steel producers in India.

52 Week Price Trend:

JINDALSTEL's current market price (CMP) stands at Rs 776.55, reflecting a significant recovery from its 52-week low of Rs 503. However, it remains somewhat shy of its 52-week high of Rs 804.85. This price action suggests a positive overall trend for the stock, with investors showing increased confidence in the company's prospects. However, there may still be room for further upside if the stock can overcome current resistance levels and push towards its previous high.

Stratzy's Analysis:

Based on Stratzy's MOST framework, JINDALSTEL has a BBB rating, indicating medium fundamental risks. This rating is determined by assessing the company's Management, Outlook, Safety, and Trend. The BBB rating suggests that JINDALSTEL has a stable management team, a cautiously optimistic outlook, a sound financial position, and a generally positive trend in its operations.

Company's Fundamentals:

Jindal Steel & Power (NSE: JINDALSTEL) is an attractive investment for value-oriented investors. Its Stock PE of 14.17 indicates that it is trading at a relatively low price compared to its earnings. The PB Ratio of 1.9 implies that the stock is undervalued compared to the value of its assets. Additionally, the Dividend Yield of 0.26% provides a modest income stream for investors. Taken together, these metrics suggest that JINDALSTEL is a potential value play with the potential for both capital appreciation and income generation.

Fundamental and Technical information provided in this blog were last updated on 16 Mar, 2024

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