InvestorQ : Would you suggest that I buy into Jindal Steel & Power at the current prices after the latest results?
Dhwani Mehta made post

Would you suggest that I buy into Jindal Steel & Power at the current prices after the latest results?

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Dilmini Mercia answered.
1 month ago
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Jindal Steel & Power or JSPL for short, reported 16.94% spurt in the sales for Sep-20 quarter at Rs.8,990 crore. Operating profits for the quarter was up 3-fold on a yoy basis at Rs.1,829 crore.

Net profits for the quarter showed a turnaround jumping from a loss to a profit, recording a net profit of Rs.903 crore. In the Sep-19 quarter, JSPL had reported a net loss of Rs.321 crore. This had an impact on margins of JSPL. OPM was up from 7.67% in Sep-19 to 20.25% in Sep-20. Net margins stood at 10.05%.

COVID had limited impact in the Jun-20 quarter but at least the Sep-20 figures indicate that the company has certainly emerged from the worries over COVID coupled with the down-cycle in demand that the steel sector was witnessing due to a slump in production and consumption globally.

Let us finally look at their product mix. Jindal Steel and Power derived 83% of its revenues from the steel sector with the balance coming from Power sector and other related businesses. For the quarter, JSPL reported record high steel production including pig iron in the Sep-20 quarter. As a solid turnaround story, it surely makes a lot of investment sense.

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