JSPL Q3 Review - Realisation Driven Earnings Boost Fails To Improve Risk Reward: ICICI Securities
A worker cycles past signage for Jindal Steel & Power Ltd.’s plant in Raigarh, Chhattisgargh, India (Photographer: Udit Kulshrestha/BloombergKeywords) 

JSPL Q3 Review - Realisation Driven Earnings Boost Fails To Improve Risk Reward: ICICI Securities

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.

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.

Click on the attachment to read the full report:

ICICI Securities JSPL Q3FY21 Results Update.pdf

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