Morgan Stanley has maintained its equal-weight call on Jindal Steel & Power Limited (JSPL) with a target price of ₹950 after the company reported consolidated EBITDA 16% ahead of its estimates for the first quarter. The outperformance was led by better realisations and lower raw material costs, which more than offset operational pressures.
However, the brokerage flagged an increase in net debt, which rose from ₹12,000 crore in the previous quarter to ₹14,400 crore. JSPL is in the final stages of commissioning its Angul project, with production expected to begin within a month, which the brokerage believes could be a key near-term trigger for volumes and capacity utilisation. Morgan Stanley noted that while the operational performance was stronger than expected, balance sheet discipline will remain an important factor in sustaining valuations.
Disclaimer: The views and recommendations made in this article are those of Morgan Stanley. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
