Metal & Mining Stock To Buy For 41% Strong Gains, 200% Dividend Income, Jumps 462.77% In 3 Yrs

Broking firm ICICI Securities has placed a "Buy" on Jindal Steel & Power Ltd. (JSPL) for strong 41% gains with a target price of Rs 750 apiece. JSPL is a large cap Metal sector company that operates in steel, power, mining and infrastructure. The company has a market valuation of Rs. 54,278.89 crore.

Recommends Dividend

The company said in an exchange filing, "considered and recommended final Dividend for the financial year 2022-23@ 200%, i.e., Rs. 2/- per equity share of face value Re. 1/- each, out of the profits of the Company for the financial Year 2022-23, which shall be paid, subject to the approval of the shareholders in the ensuing Annual General Meeting and other authorities, wherever required."

Outlook: Positive on cost efficiencies and value-accretive capex

ICICI Securities said, "We perceive JSPL to be on the right track with upcoming cost-efficiencies helping it in a tough macro-environment of subdued steel prices. The balance sheet has enough headroom for the company to complete the ongoing capex at Angul."

It added, "We value JSPL at 6x FY25E EBITDA resulting in a target price of Rs750/share. Maintain BUY on the stock, which we recommend as our top pick in the ferrous space."

Stock Overview & Returns

On Wednesday, the stock closed 5.05% down at Rs. 532.10 apiece. Its 52 week high recorded on 1 February 2023 is Rs. 622.75 apiece while, the 52 week low on 22 June 2022 at Rs. 304.20 apiece, respectively.

The stock fell 9% in 1 week, whereas it has fallen 5.06% in 1 month and 9.83% in 3 months, respectively. It has given 9.98% positive return in 1 year. In 3 years it has given a multibagger return of 462.77%. In the past 5 years, it has given 107.49% positive return.

Disclaimer - The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.