Buy Jindal Steel & Power

Buy Jindal Steel & PowerStock market analysts have maintained ‘buy’ rating on Jindal Steel & Power Ltd stock with an intraday target of Rs 765.

According to them, interested traders can purchase the stock above Rs 692 with a strict stop loss of Rs 682. If the stock market remains positive, the stock pricing becomes more attractive, and reach above Rs 772.
Shares of the company, on Wednesday (Oct 29), closed at Rs 689.05 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 256710. Current EPS & P/E ratio stood at 89.82 and 8.67 respectively. The share price has seen a 52-week high of Rs 3356 and a low of Rs 517.30 on BSE.

The stock has good potential and it can still exhibit superb surge. It will achieve the target price on the back of its healthy quarterly result for the three-month period ended Sep 30, 2008.

Jindal Steel & Power has announced a phenomenal increase in standalone net profit for the quarter ended September 30, 2008.

The company’s net profit rose 62.18% to Rs 4,500 million from Rs 2,774.70 million in the same quarter previous year.
Net sales for the period under review climbed 74.63% to Rs 22,161.20 million, whereas total income for the quarter jumped 75.41% to Rs 22,310.80 million, when compared with the prior year period.

The company reported earnings of Rs 29.09 a share during the quarter, registering 67.72% decline over previous year period.

At the 29th Annual General Meeting (AGM) of the company held on Sep 26, 2008, the company’s directors  declared final dividend at 250% i.e. Rs 2.50 a  share of Re 1 each.

Jindal Steel and Power (JSPL), during the last month, announced that the company plans to float a wholly-owned arm, Jindal Petroleum, which would look after the domestic and overseas oil and natural gas operations of the company.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Adhunik Metalik, Jai Balaji Ind and Godawari Power.