ADD Jindal Steel & Power: IIFL
Published on Wednesday, November 4th, 2009 at 11:08 PMAuthor: stockalert (2026 Articles)
IIFL has maintained ADD rating on Jindal Steel & Power in its November 4, 2009 research report.
Jindal Steel & Power, JSPL’s 2QFY10 standalone profit dropped 46% YoY, while consolidated profit rose 6% YoY, in line with our expectation. The fall in standalone profit was due to weak steel prices (down 26% YoY), while growth in consolidated profit was driven by Jindal Power, whose profit rose 64% YoY. During the concall, management said it expects to commission 1.35GW worth of projects ahead of schedule, which leaves an upside to our earnings CAGR of13% through FY09-FY12ii. Although valuations are not cheap, PE of 14.3x on FY11ii given visibility on expansion and existing cash flows, it remains our preferred pick among the large-cap utilities. We maintain ADD.
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