Jindal Steel and Power was leading the pack of gainers with a growth of 11.51 per cent to Rs 107.50, followed by JSW Steel and NMDC, up 5.83 per cent and 3.52 per cent, respectively
Jindal Steel and Power (JSPL) share price rallied over 12 per cent to Rs 108.70 apiece on BSE in Tuesday’s volatile session after the company reported a consolidated net profit of Rs 305.62 crore in the quarter ended March 31. The company had posted a net loss of Rs 2,713.34 crore in the corresponding quarter of last year. The stock hit the day’s low of Rs 99.20 per share. Jindal Steel and Power share price has risen 75 per cent from its low of Rs 62.10 touched in April. While the stock is still 46 per cent down from its 52-week high of Rs 202.40 hit in the second month of the calendar year 2020. S&P BSE Metal index was ruling with upticks with all the constituents in green except Vedanta, as more economies are easing lockdown restrictions.
At 2.15 PM, Jindal Steel and Power was leading the pack of gainers with a growth of 11.51 per cent to Rs 107.50, followed by JSW Steel and NMDC, up 5.83 per cent and 3.52 per cent, respectively. Hindalco Industries share price was up 3.52 per cent, SAIL gained 2.20 per cent, Tata Steel advanced 2 per cent. While Coal India and National Aluminium were up 1.92 per cent and 1.67 per cent. On the flip side, Vedanta share price was down 0.73 per cent to Rs 88.45, the only stock trading in red in BSE metal index. In comparison, the S&P BSE Sensex was trading 0.49 per cent down at 30,521.
The total income of Jindal Steel and Power during the fourth quarter of FY20 was down at Rs 8,835.23 crore as against Rs 10,158.95 crore in the same period a year ago. Total expenses, however, stood at Rs 8,355.48 crore during the quarter under review as compared to Rs 11,850.61 crore in the corresponding period of last year.
Research and brokerage firm Motilal Oswal in results flash, recommended the stock with ‘buy’ rating to it. From yesterday’s close of Rs 96.40, the stock will have to jump 38% to touch the target price of Rs 150 predicted by the brokerage firm. “JSPL’s 4QFY20 consolidated EBITDA of Rs 2,220 crore was up 22% QoQ due to higher steel prices in Indian and Oman operations,” Motilal Oswal said in a research report. “The beat on estimates was led primarily by higher-than-expected margins in Oman operations and lower raw material costs in standalone operations due to usage of Sarda mines’ inventory,” it added.