INSUBCONTINENT EXCLUSIVE:
Mumbai: Jindal Steel and Power (JSPL) stock may be headed for a strong re-rating as the company started transporting its 12 million tonnes
of iron ore inventory from Sarda mines following a Supreme Court order
The relief is well-timed given the domestic market tightness amidst mine auctions
cost results in Rs 2,500 crore or 29 per cent increase in FY21 estimated Ebitda and 160 per cent increase in FY21 earnings per share
analyst, Kotak Securities
The company has reduced its debt from Rs 42,962 crore in March 2019 to Rs 32,113 crore in September 2019
Stock is currently trading at 0.58 times its book value.
JSPL announced that it has started transporting its iron ore from Sarda mines
following a Supreme Court order
This confirms that Sarda mines has cleared its Rs 930 crore of pending dues to the state government and should soon start operating the
mine.
BCCL - Non CopyrightA Supreme Court bench recently gave a verdict in favour of JSPL allowing the company to transport iron ore lying
in Thakurani block mines of Sarda Mines
Sarda, which is a captive mine supplying high-quality ore to the Naveen Jindal-led JSPL plant, was shuttered on March 2014, owing to lack of
However, last week, the apex court permitted Sarda to resume its mining operations in Odisha subject to deposit of Rs 933 crore towards
environmental compensation by February 29
This development is positive for the company as it creates certainty around iron ore supply for a year and might lift pellet plant
analyst, Edelweiss Securities
