Stock Market Today: Jindal Steel and Power Shares Fall 13% in Friday Morning Trade After Q3 Results Released Post-Market on Thursday
Stock Market Today: Jindal Steel and Power Shares Drop Over 13% After Q3 Results
Jindal Steel and Power Share Price Decline
During the morning of Friday Jindal Steel and Power observed their stock price drop over 13% following the reported Q3 results released after market hours on Thursday.
The BSE opened Jindal Steel and Power‘s stock at ₹799.85 whereas it had closed at ₹840.10 ahead of trading. Jindal Steel and Power reached its lowest point for the day at ₹724.35 before ending with a more than 13% decline.
Jindal Steel and Power Q3 Results
Within Q3 FY25 the company generated a net profit of ₹950.88 crore while its results during the corresponding time of the previous year showed ₹1,927.99 crore.
Sales & Revenue Growth
- In Q3 FY25 Steel segment delivered 1.90 million tonnes (MT) of sales which showed a 5% augmentation over 1.81 million tonnes (MT) from the similar period in the previous fiscal year.
- The unfavorable price conditions for steel in India resulted in revenue staying at the same level.
- The operations revenue for Q3 reached ₹11,750.67 crore demonstrating a similar level to the ₹11,701.32 crore recorded the previous year.
Analyst Views on Jindal Steel and Power
Motilal Oswal Financial Services (MOFSL) Report
The third quarter earnings from Jindal Steel and Power suffered due to lower than anticipated sales numbers according to MOFSL analysis.
- The actual steel sales volume reached 1.9 MT whereas Motilal Oswal Financial Services (MOFSL) predicted 2.18 MT.
- The weak performance mainly resulted from reduced sales combined with reduced realization figures.
Future Outlook
The earnings at MOFSL predict future improvement across multiple quarters because of two factors:
- Higher production volumes
- Cost reductions
Future EBITDA estimates prepared by the company indicate decreasing numbers for the forthcoming three fiscal years.
- FY25: Down by 6%
- FY26: Down by 17%
- FY27: Down by 10%
MOFSL’s Investment Recommendation
- Rating: BUY
- Revised Target Price: ₹960
MOFSL needs additional clarity concerning Jindal Steel and Power’s upcoming capital expenditure (capex) plans to make future earnings assessments.
Also Read: Waaree Energies Stock Surges 14% on Strong Q3 Earnings
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