Jindal Steel and Power share price declines 13% post Q3 results: Do you own it?

Stock Market Today: Jindal Steel and Power share price declined more than 13% in the morning trades on Friday post Q3 Results that were announced by the company post market hours on Thursday

Jindal Steel and Power share price opened at ₹799.85 on the BSE on Friday, almost 5% lower compared to previous close of ₹840.10. The Jindal Steel and Power share price dipped to intraday lows of ₹724.35, marking a decline of more than 13%.

Jindal Steel and Power Q3 Results

Jindal Steel and Power net profit during the quarter ending December 2024 at ₹950.88 more than halved compared to ₹1,927.99 crore in the year ag quarter.

The Volume growth for Jindal Steel and Power remained soft. The steel sales during Q3FY25 at 1.90 million tonne (MT) grew 5% compared to 1.81 MT during the year ago quarter,. The steel prices in the country also have not remained much supportive for steel producers and hence revenues from operations for Jindal Steel and Powe during Q3 came almost flat at ₹11,750.67 crore compared to ₹11,701.32 in the year ago quarter.

Analyst Views

Motilal Oswal Financial Services said that Q3 result for Jindal Steel and power were hit by weak volumes. Steel sales volume at 1.9mt (up 5% YoY and 3% sequentially) came lower than their estimates of 2.18mt . Though Jindal Steel and Power Ltd Q3 performance was below their estimates due to weak volumes and subdued realizations., MOFSL said that the Earnings should improve ahead, aided by volume ramp-up and cost reductions.

MOFSL has cut its Earnings before interest Tax Depreciation and Amortisation (Ebitda) estimates by 6%,17% and 10% for FY25,FY26,FY27 to factor in a weaker-than-expected volume growth outlook. However they also await further clarity on the new capex plans to assess its specific implications on earnings. MOFSL has maintained its BUY rating with a revised target price of ₹960

Antique Stock Broking said that Product mix improvement from Angul phase I expansion would support growth and profitability. While Antique also said that Specific details and execution of phase II expansion with an outlay of ₹15,000 Crore would have to be monitored with phase I witnessing delays in commissioning. Strong balance sheet would be able to support the phase II expansion.

To factor in lower volumes, softer realization, and higher costs leading to a 26%, 26%, 19% reduction respectively in FY25, 26/,27 Ebitda respectively. Antique maintains BUY rating with a revised Target Price of ₹996 (earlier ₹1,183)

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