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JSPL Management Meet Update - Long-Term Growth Plan Intact: Motilal Oswal

JSPL Management Meet Update - Long-Term Growth Plan Intact: Motilal Oswal



A worker climbs a flight of stairs as steel beams sit at the rolling and universal beam unit of the Jindal Steel & Power Ltd. plant in Raigarh, Chhattisgargh, India. (Photographer: Udit Kulshrestha/Bloomberg)
A worker climbs a flight of stairs as steel beams sit at the rolling and universal beam unit of the Jindal Steel & Power Ltd. plant in Raigarh, Chhattisgargh, India. (Photographer: Udit Kulshrestha/Bloomberg)

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Motilal Oswal Report

Jindal Steel and Power Ltd.'s near-term demand is tepid and demand decline is seen (especially last month) due to-

  1. the ban on construction in the national capital region region due to severe pollution levels,

  2. an extended monsoon,

  3. weak sentiment in the international market – consumers are adopting the wait-and-watch policy, and

  4. sufficient inventory lying with traders, who, in a falling market, would try and liquidate rather than accumulate.

However, pent-up demand is inevitable, as seen since the ebbing of the first Covid-19 wave.

JSPL's management highlighted that the pricing for longs products has corrected by Rs 4000/tonne. Rebar has corrected to Rs 58,000/tonne (from Rs 62,000/tonne in November). We believe the trade is operating at Rs 56,000/tonne.

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Motilal Oswal JSPL Management Meet Update.pdf

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