Analysts see strong upside in JSPL as risk-reward turns favourable

Valuation attractive; expansion to help firm withstand challenges

jindal, steel
Jindal Steel & Power

As a weak demand and pricing environment weighed on steel stocks, Jindal Steel and Power (JSPL), too, fell to a 52-week low last week. However, it has rebounded since, recording gains of 16 per cent on expectations of an improvement in the company’s fundamentals, say analysts, many of whom have JSPL as their top pick in the steel pack. Improving operating cash flows, better operating leverage and volume growth led by expansion at its Angul plant should help JSPL better withstand the challenges industry is facing. Moreover, with the stock down by half in the past one year, ...