The Kotak Securities Report: Buy Jindal Steel & Power

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

About Jindal Steel & Power:

Jindal Steel & Power Limited (JSPL) is a diversified steel, power, and mining conglomerate in India. Founded in 1982, it is one of the largest steel producers in the country, operating integrated steel plants in Raigarh, Chhattisgarh, and Angul, Odisha. JSPL also has significant global operations with steel production facilities in Oman and North America. Additionally, the company generates power through its thermal power plants and has interests in coal mines and iron ore mining operations. JSPL is committed to sustainability and aims to achieve net-zero emissions by 2050, focusing on renewable energy sources and energy-efficient technologies.

52 Week Price Trend:

JINDALSTEL is currently trading at Rs. 776.55, with a 52-week high of Rs. 804.85 and a 52-week low of Rs. 503. This indicates that the stock is trading near its 52-week high and significantly above its 52-week low. The high valuation suggests that investors are optimistic about the company's prospects, while the proximity to the 52-week high may indicate limited upside potential in the short term.

Stratzy's Analysis:

JINDALSTEL has a BBB rating according to Stratzy's MOST framework, which evaluates Management, Outlook, Safety, and Trend. This indicates medium fundamental risks, as ratings with B indicate medium risk. The overall score of BBB suggests that while JINDALSTEL may face some challenges, its fundamentals are generally sound.

Company's Fundamentals:

Jindal Steel & Power (NSE: JINDALSTEL) trades with a Stock PE of 14.17, which measures its valuation relative to its earnings. This value suggests that investors pay Rs. 14.17 for every Re. 1 of the company's earnings. The company's PB Ratio of 1.9 indicates that its market value is 1.9 times its book value, suggesting a potential overvaluation compared to its assets. Despite its valuation metrics, JINDALSTEL offers a dividend yield of 0.26%, providing investors with a small income stream as a return on their investment.

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

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