Global and local brokerages were positive on Jindal Steel and Power following the company’s September quarter earnings announcements.
The company’s consolidated net loss narrowed to Rs 499 crore during the quarter ended September 2017.
The Naveen Jindal-led firm had posted a net loss of Rs 747.27 crore in the same quarter a year-ago.
However, the company's total consolidated income was higher at Rs 6,124.78 crore in July-September quarter this fiscal from Rs 5,028.67 crore during the corresponding period of 2016-17, it said in a BSE filing.
Total expenses rose to Rs 6,674.43 crore from Rs 6,049.81 crore in the year-ago quarter.
During the quarter, the company divested its oxygen plant assets and used the proceeds to clear its entire pending domestic dues with all banks.
"The company remains focused on bringing down debt...," it added.
Last month, JSPL had sold its oxygen plant assets of Raigarh and Angul units to SREI
Brokerage: Citi | Rating: Buy | Target: Rs 200
Citi observed that the company’s earnings were in line while cash break even continued. Having said that, stock remains inexpensive at 0.5 times P/BV. Going forward, it said, EBITDA should improve further as capacity utilisation improves.
Brokerage: Motilal Oswal | Rating: Buy | Target: Raised to Rs 290
Motilal Oswal said that Oman reported strong numbers and that has driven an upgrade. It raised estimates for Oman to factor in higher capacity utilization, while consolidated operating profit estimate is raised by 6.4%/9.5% For FY18/FY19
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