Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Jindal Steel & Power Ltd. (JSPL) represented in our Namaste India conference.
The guidance from the company remained same as presented by the
company in the post result conference call. The key highlights of the meeting
were -
* Debottlenecking has resulted in steel capacity increasing from 2.7mtpa
to 3.5mtpa. Production ramp up to be largely completed in the current quarter.
* Target for external pellet sales likely to increase from 1.8mnt in FY12 to
2.5mnt in FY13E.
* Commissioning of capacities in Angul plant is likely to be delayed by c3
months. Operational cost details are paramount and the company's endeavor
is that profitability of projects in Angul should be similar to that of
existing facilities.
* While JPL has received Environmental Clearance for the Dumka power
(likely commissioning FY16), while the same for Godda is still pending (likely
COD in FY17). The company has not placed the equipment order for either
of these projects.
* After acquiring 60% stake in the Gopalpur port, with a capacity of 20mtpa,
the company is open for other inorganic options in steel and power provided
investments meet their hurdle rates.
* Within first full year of operation of the Shadeed (Oman) plant, the utilisation
has improved to 80%. Management believes there is a further room
for improvement.
* The company is in discussion with the Bolivian government to sort out
some of the differences regarding the expansion plans there and some outcome
is expected in next 1 month.
We have a Buy on JSPL with a target price of INR 710 and it is one of our
top-infra picks.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Jindal Steel & Power Ltd. (JSPL) represented in our Namaste India conference.
The guidance from the company remained same as presented by the
company in the post result conference call. The key highlights of the meeting
were -
* Debottlenecking has resulted in steel capacity increasing from 2.7mtpa
to 3.5mtpa. Production ramp up to be largely completed in the current quarter.
* Target for external pellet sales likely to increase from 1.8mnt in FY12 to
2.5mnt in FY13E.
* Commissioning of capacities in Angul plant is likely to be delayed by c3
months. Operational cost details are paramount and the company's endeavor
is that profitability of projects in Angul should be similar to that of
existing facilities.
* While JPL has received Environmental Clearance for the Dumka power
(likely commissioning FY16), while the same for Godda is still pending (likely
COD in FY17). The company has not placed the equipment order for either
of these projects.
* After acquiring 60% stake in the Gopalpur port, with a capacity of 20mtpa,
the company is open for other inorganic options in steel and power provided
investments meet their hurdle rates.
* Within first full year of operation of the Shadeed (Oman) plant, the utilisation
has improved to 80%. Management believes there is a further room
for improvement.
* The company is in discussion with the Bolivian government to sort out
some of the differences regarding the expansion plans there and some outcome
is expected in next 1 month.
We have a Buy on JSPL with a target price of INR 710 and it is one of our
top-infra picks.
No comments:
Post a Comment