Jindal Steel & Power hits over 6 month high; stock up 23% in two weeks
Shares of Jindal Steel & Power (JSPL) gained 4 per cent on the BSE on Monday to hit an over six-month high of Rs 168 on expectation of improved earnings going forward. The stock of the OP Jindal Group company was trading at its highest level since June 14, 2019.
In the past two weeks, JSPL’s stock rallied 23 per cent after the company commissioned its fourth coke oven battery at Angul plant making it self-sufficient in coke requirement. In comparison, the S&P BSE Sensex was up 1.5 per cent during the same period.
The next leg of growth at Angul is expected to be driven by recommencement of production at the 1.8mtpa direct reduced iron (DRI) plant (by end-December 2019), which would use the rich gas produced by the coke oven batteries. The fourth unit of the 500ktpa coke oven battery has also been commissioned, which will supply coke to Raigarh, substituting purchased coke.
