- Jindal Steel reported a net loss of 3.39 billion rupees for the fourth quarter, contrasting with a profit of 9.35 billion rupees in the previous year. Analysts had estimated a profit of 10.78 billion rupees.
- Revenue for the quarter stood at 131.8 billion rupees, representing a 2.3% decrease compared to last year. However, this exceeded the estimated revenue of 124.19 billion rupees.
- Total costs decreased by 3.4% year-over-year, amounting to 119.4 billion rupees.
- Other income grew to 718.1 million rupees from 343.5 million rupees year-over-year.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) were 24.8 billion rupees, showing a 1.2% decline from the prior year.
- The company declared a dividend of 2 rupees per share.
- Jindal Steel’s net debt was reduced by 12% quarter-over-quarter to 119.57 billion rupees, with a net debt-to-EBITDA ratio of 1.26 times.
- The quarter included a one-time exceptional loss of 12.3 billion rupees, primarily related to impairment provisions for mining assets in Australia and Madagascar, and expected credit losses for a Mauritius subsidiary.
- Analyst recommendations for Jindal Steel include 19 buy ratings, 5 hold ratings, and 5 sell ratings.
Jindal Steel & Power on Smartkarma
Analysts on Smartkarma are bullish on Jindal Steel & Power, with Sudarshan Bhandari highlighting the company’s ambitious INR 31,000 crore capex plan nearing completion. The strong promoter buying signals confidence in the company’s future prospects, expected to improve margins and position it as an infrastructure powerhouse. With secured fuel sources, captive power, and a focus on value-added products, Jindal Steel & Power is poised for growth, especially with the potential boost from a steel price recovery.
Another analyst, Rahul Jain, views the current cyclical downturn as an attractive entry point for investors eyeing Jindal Steel & Power. The company’s plan to increase steelmaking capacity by 65% in the next 3 years, combined with recent insider buying during stock price declines, presents a compelling long-term investment opportunity. Jain notes the low debt levels, standing at less than 1.4x EBITDA, as a factor supporting steady capacity addition and underscores the company’s potential amidst rising domestic steel demand.
A look at Jindal Steel & Power Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Jindal Steel & Power seems to have a positive long-term outlook. The company scored well in the areas of value, momentum, growth, and resilience, showcasing strength across multiple factors. With a strong value score of 4, Jindal Steel & Power is deemed to be in a good position in terms of its financial valuation. Alongside this, its momentum score of 4 suggests that the company has positive price trends and market sentiment.
Jindal Steel & Power, a company known for manufacturing sponge iron, mild steel, and cement, as well as being involved in power production and mining activities, appears to have a solid foundation for future growth. While scoring lower in the dividend and growth categories, the company’s resilience score of 3 indicates its ability to weather economic uncertainties. Overall, the combination of these scores paints a promising picture for Jindal Steel & Power‘s prospects in the long run.
Summary: Jindal Steel & Power Ltd. (JSPL) is a company engaged in manufacturing various materials such as sponge iron, mild steel, and cement. Additionally, JSPL is actively involved in power production, mining operations for iron ore and coal, and exploration for natural gas and oil. With a focus on contributing to infrastructure development, JSPL leverages its diverse resources to drive growth and profitability.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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