JSPL Q3 Review - Realisation Driven Earnings Boost Fails To Improve Risk Reward: ICICI Securities
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ICICI Securities Report
Jindal Steel and Power Ltd. stands out in the Indian metals space by virtue of its clear intent to deleverage and execution towards that end.
Reported net debt for Q3 FY21 stood at Rs 256 billion, with Rs 33 billion of net debt reduction in Q3 FY21.
We feel the company may reach its stated net debt target of Rs 150 billion before FY23E, possibly by FY22E end.
The company has been seeing a gradual increase in power purchase agreements with 38% of the capacity tied up.
The key risk in our view is the elevated steel spread in the sector.
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