Jindal Steel & Power Ltd., incorporated in the year 1979, is a Mid Cap company (having a market cap of Rs 31421.59 Crore) operating in Metals – Ferrous sector.
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 10898.70 Crore, up 19.28 % from last quarter Total Income of Rs 9137.43 Crore and up 17.19 % from last year same quarter Total Income of Rs 9299.82 Crore. Company reported net profit after tax of Rs 2566.68 Crore in latest quarter.
JSP remains the cheapest stock in the sector, trading at 4.1x/3.8x FY22/FY23E EV/EBITDA. The valuation discount vs. the Indian metals sector is not justified. Historically, the higher beta vs. peers made sense when JSP had heavy debt on its books (net debt/EBITDA at 13.4x in FY16).
Promoters held 60.48 per cent stake in the company as of March 31, 2020, while FIIs held 13.40 per cent, DIIs 12.35 per cent and public and others 13.77 per cent.