JSPL heads for turnaround next year

Completion of capacity expansions may drive volumes and profit, helping address its debt issues

Jindal Steel and Power (JSPL), which had underperformed larger peers Tata Steel and JSW Steel in recent years, has emerged as a strong performer on the bourses in FY18 so far.

The share price is up three-fold in a year, with 70 per cent gain coming in the current financial year, led by marked improvement in the steel business. Though its power segment remains a laggard, in the absence of long-term power purchase agreements (PPAs), improvement in its steel segment should be enough to lift sentiment further.

With the steel cycle turning favourable after implementation of minimum import prices (MIPs) and other