Jindal Steel Shares Gain 3% After Robust Q4 Results, Brokerages Raise Target Price

Jindal Steel and Power stock rose 3% in the morning session after the company's results for the March quarter impressed the brokerages.

What Happened: Jindal Steel and Power's net profit surged over 100% year-on-year to ₹933 crore in the quarter. The company's gross revenue fell to ₹15,749 crore from ₹15,797 crore in the same quarter last year. On a sequential basis, revenue increased from ₹13,698 crore posted in the December quarter. 

Adjusted EBITDA increased by 12% YoY to ₹2,512 crore in the March quarter. However, this was lower than the December quarter's EBITDA of ₹2,802 crore. Its Adjusted EBITDA per ton increased to ₹12,496 from ₹11,035 in the previous year. 

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Brokerage Calls: Nuvama Institutional Equities maintained their "buy" call and raised the target price to ₹1,185. The brokerage sees the company's EBITDA/t to increase to around ₹15k in Q1FY25 due to higher steel prices and reduced coking coal costs. EBITDA CAGR will also increase to 34% over FY24-26E as most of its expansion will be completed by FY25E. 

Kotak Institutional Equities also reiterated their "buy" call and hiked the target price to ₹1,080. Kotak also sees the margins increasing due to steel price hikes and coking price declines. The company also ramped up two coal mines to rated capacity and their other expansion projects will provide volume growth and margin expansion over FY25-26E. 

Price Action: Jindal Steel and Power stock zoomed over 3% to ₹973.30 in the morning session on Tuesday. 

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Posted In: EarningsEquitiesNewsPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasJindal Steel and Power