The shares of Jindal Steel & Power Ltd (JSPL) have demonstrated a remarkable performance, surging by 60% from their 52-week low point reached last year. The metal company had reached a yearly low of Rs 424.60 on October 12, 2022, but it achieved a 52-week high of Rs 722.15 on September 15 of this year. On the most recent trading day, JSPL stock closed 2.86% lower at Rs 678.60, compared to the previous day’s closing price of Rs 698.55 on the BSE, resulting in a market capitalization of Rs 69,223 crore. JSPL shares have seen a gain of 14.31% since the start of this year and have risen by an impressive 54.31% in the past year.
JSPL stock has displayed a one-year beta of 1.4, indicating significant volatility during this period. On the BSE, a total of 0.96 lakh shares of the company were traded, representing a turnover of Rs 6.53 crore.
JSPL shares have delivered remarkable returns, amounting to 257% in the last three years.
In terms of technical indicators, the relative strength index (RSI) for Jindal Steel stands at 46.8, suggesting that the stock is currently neither oversold nor overbought. The stock is trading above its 50-day, 100-day, 150-day, and 200-day moving averages but below its 5-day, 10-day, 20-day, and 30-day moving averages.
Several brokerages have provided target prices for JSPL stock:
- Motilal Oswal has set a target price of Rs 790, citing the company’s prudent deleveraging policy and strong balance sheet. With a net debt of Rs 6,800 crore in 1QFY24 and a net debt-to-EBITDA ratio at a comfortable level of 0.75x, JSPL is considered to have one of the strongest balance sheets among domestic manufacturers. The stock is trading at 4.8x FY25E EV/EBITDA. Motilal Oswal reiterates a BUY rating on the stock with a target price of Rs 790 (5.5x FY25E EV/EBITDA).
- ICICI Securities recommends a BUY on JSPL stock with a target price of Rs 810.
- Antique Broking maintains a target price of Rs 804 per share for JSPL stock.
The company reported a 15% decrease in net profit in Q1, primarily due to rising expenses and declining steel prices. The earnings report was released after market hours on August 11. Consolidated profit dropped to Rs 1,692 crore in the three months ending on June 30, down from Rs 1,990 crore in the same period a year earlier. Revenue also decreased to Rs 12,643 crore in Q1 of this fiscal year, compared to Rs 13,069 crore in the June quarter of the previous fiscal year. Operating profit or EBITDA stood at Rs 2,628 crore in the June 2023 quarter, down from Rs 3,438 crore in Q1 of the previous fiscal year.
Please note that this article is provided for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.