Buy JSPL for Price Target Of Rs. 640 - Stock Recommendation

0 comments
Jindal Steel & Power Ltd. is recommended to buy with a price target of Rs 640 as against the current market price (CMP) of Rs 486.80 reported on 03-Jan 2012.

Currently JSPL has operational capacity of 1,000MW at Tamnar, Chattisgarh, which is one of the largest merchant capacities in India. In the near term the company is likely to register a healthy profit from the power segment as the cost of power generation remains broadly unchanged, given the company has a captive coal mine.

JSPL plans to increase its steel capacity 4 x over the next four years and power capacity 10x in 10 years. JSPL has one of the best iron ore and coal resources in India, with assets spread over various mineral-rich countries. Both its steel and merchant power businesses are insulated from input prices.

The stock has underperformed over the last 18-20 months, due to anticipation of slower earnings growth over FY11-13. We expect the stock to get re-rated again, as the visibility of projects and earnings improves over the next 12 months.

Get Daily Tips Directly on Email

Followers

Blogger news

What We Provide

We give Intraday Stock Tips, Markets Outlook, Nifty Tips Tomorrow, Futures Options Tips, Bank Nifty Tips, MCX Commodity Tips..

Free Trial Tips On Mobile By SMS

Subscribe us to get FREE TRIAL in stocks & commodity tips on your mobile by sms. We offer 2 days Free Trial for stock tips and commodity tips....... 2 Days Free Trial

Classified Ad Listing

FREE MCX and NCDEX DAILY TIPS ON MOBILE BY SMS
Get Daily MCX and NCDEX tips with more than 90% accuracy on your MOBILE phone by SMS. We provide sure shot MCX and NCDEX Commodity tips with atleast 3-5% return on an intraday trading basis.
Free Trial

Disclaimer

This blog is not intended as professional advice. The author disclaims any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material.

Stock Market Trading Tips