JSPL - Power Unit Divestment To Help Expand Steel Capacities: Motilal Oswal
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
We have mixed feelings about the proposed sale of Jindal Power Ltd. by Jindal Steel and Power Ltd.
While we find the enterprise value of approximately Rs 95 billion, implying five times FY22E enterprise value/Ebitda, for the asset a bit underwhelming, it does improve the growth outlook for the steel business by freeing up both the balance sheet and management bandwidth.
The company has already announced its intent to double capacity at Angul to 12 million tonnes per annum.
Moreover, by hiving off thermal power plants and reducing its carbon footprint, access to global capital should improve for the company.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.