Jindal Steel's Sales Growth Supported by Tailwinds — Market Talk
Jindal Steel's sales volume growth is poised to be supported by some tailwinds, Elara Securities (India)'s analysts say in a research report as the brokerage maintains an accumulate rating. These tailwinds include improved product mix, further ramp-up at existing facilities, and completion of ongoing expansion projects, the analysts say. The steel producer's value-added product portfolio is likely to strengthen further from its recently commissioned galvanizing line at Angul plant in India's Odisha. Also, the near-term impact of weak steel prices should be cushioned by benign coking coal costs. The brokerage raises the target price to INR1,050.00 from INR991.00 to reflect valuation roll-over. Shares are 2.4% lower at INR970.70. (ronnie.harui@wsj.com)