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By Malvika Gurung
Investing.com — Shares of the steel and energy company Jindal Steel & Power (NS:) gained for the sixth consecutive session and recorded a fresh 10-year high at Rs 529.35 apiece on Thursday, backed by higher volumes.
The last time the company’s shares were anywhere this value was on April 3, 2012, and it closed 2.76% higher at Rs 524.9 apiece on Thursday. The stock has been surging about 16% over the past 6 sessions, stated a coverage.
Moreover, brokerage firm Motilal Oswal (NS:) Securities has initiated a Buy call on the power stock, with a target price set at Rs 605/share, an upside of Rs 15.2% compared to its current price.
The steel company continues to move ahead with the policy of deleveraging through the entire steel upcycle and announced a growth capex only after the sustainable net debt to EBITDA fell under 3x.
At present when the coking coal prices are at record highs, the company has started shipments from its Wollongong mines, which can help it save an estimated $200 million in FY23.
‘JSPL is the only company in our universe which offers strong volume growth, deleveraging and increase in the share of captive raw materials’, added the brokerage.
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