IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends “Buy’’ Jindal Steel & Power.
According to IIFL report, during the 4QFY12 conference call, the JSPL management shared that: it expects to maintain 3m MT production run-rate at its Raigarh steel facility; merchant power rates to average at Rs3.75-4/unit, it expects delays in its steel projects at Angul; andit foresees no regulatory risk to its merchant power business. JSPL’s 4QFY12 PAT growth of 17% YoY was in line.
IIFL said, “We believe near-term re-rating will be driven by signing of mining lease (ML) for the Angul coal mine, which forms thebackbone of its projects under implementation. Maintain BUY”.
The report was published by IIFL’s Institutional Equities Research desk.