
Jindal Steel and Power Limited (JSPL) reported a remarkable surge in its Q2 profits, skyrocketing from ₹219.3 crore to ₹1,390.1 crore year-on-year. Despite this positive financial performance, the announcement on Wednesday was overshadowed by a 9.2% decrease in consolidated net revenue, leading to a 7% dip in the company’s stock price, which fell to ₹590.
As of 1:31 pm, JSPL shares were trading 6.85% lower at ₹590.40.
During this period, JSPL’s shares worth ₹8.68 crore were traded on BSE. The company managed to deliver impressive multibagger returns of 211% over the past three years, showcasing its resilience amidst market volatility, with a one-year beta of 1.4 and a neutral market sentiment reflected in an RSI of 33.4.
However, Nuvama Institutional Equities and Motilal Oswal revised their target prices for JSPL to ₹879 and ₹730, respectively, influenced by weak EBITDA due to lower steel prices, delays in capacity expansion, and projected high capital expenditure in FY25E. Nuvama adjusted its FY24E/25E EBITDA estimates by 12%/8%, citing lower realization partially offset by higher volume.