InvestorQ : why jindal steel stock is going down. can anybody explain plz
manjunath a v made post

why jindal steel stock is going down. can anybody explain plz

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1 year ago

Jindal Steel and Power (JSPL) has concerns at the industry level and also at the company level. Here are some of the concerns on Jindal Steel.
The steel industry is going through a down cycle due to weak demand from automobiles and construction. Both are major consumers of steel.

Steel prices have taken a hit in the last two quarters due to weak demand from China, which continues to be the largest steel consumer in the world.

The China slowdown where GDP growth dipped to a 30 year low of 6.2% has been largely responsible for this situation. 

Jindal Steel has been under a large mountain of debt and its promises to reduce the debt have not taken off in a big way

In the March 2019 quarter, the company made a huge net loss of Rs.1154 crore and that has dampened sentiments around the stock. The company has not paid dividends after 2014. All these factors are contributing to the weak sentiments on JSPL.

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Suhani Mirza answered.
1 year ago

Yes. I think this can be a good time to buy Jindaal stock. The reason for the fall in stock (Rs. 95.01- NSE ) is the rumors and fake news regarding the company, as per the Naveen Jindal. owner of Jindal Steel and Power Ltd (JSPL).

In one of his report, Naveen Jindal said, "baseless and false” rumors of the company defaulting on payments. “Investors are advised to treat such news as fake news".
As per the recent update, the company is functioning good and operating with adequate cash. Also, due to sound financial state, the company made a prepayment of around Rs 300 crore towards NCDs, earlier than its due date. 

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leah Diaz answered.
1 year ago

Jindal steel made an upward push by 4% today. The recent report gives the cause of stocks showing the upward trend is the company's announcement. Jindal steel and power ltd. disclosed that it sold major international venture Botswana coal mine to Maatla Energy. The deal was made of around nearly 150$ million.