Morgan Stanley maintains overweight on JSPL, target price Rs 139
Overweight Jindal Steel & Power Ltd. at a price target of Rs 139.0 .
For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 8939.47 crore, down -10.12% from last quarter sales of Rs 9945.58 crore and down -9.90% from last year same quarter sales of Rs 9921.81 crore. The company has reported net profit after tax of Rs -399.31 crore in the latest quarter.
High leverage ratios and losses in international operations were a drag on Jindal Steel stock, said Morgan Stanley. Any initiative that turns around the international operations and helps in monetizing these assets would help in improving its net debt position, said morgan Stanley. The company has also signed an agreement to sell its Botswana assets, which if executed, could further help improve the net debt situation, the brokerage said.