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Given the ongoing global trade concerns, we expect steel prices to
remain volatile along with increasing iron ore prices due to Vale incidence. However, we
project that domestic demand will continue to remain positive for steel and power
sectors on long term basis, and expect JSPL to perform well in coming years along with
the ramp-up of Angul plant and realizations in steel segment. We also anticipate that
power segment will perform well on account of improving visibility of PPA (short and
long term) and various efforts by GoI for availability of fuel to power generators. We
maintain our Buy recommendation on JSPL with a Target Price of `250 with a potential
upside of 64% over a period of next 9-12 months.

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