JSPL's all-round show in Q4 leaves investors happy, analysts maintain 'buy'

Operational performance is expected to remain good, and volume growth guidance too bodes well

Shares of Jindal Steel and Power Limited (JSPL) are up more than 19 per cent in over two days, following its all-round better-that-expected results for the March quarter (Q4). This was enabled by continued benefits from expanded steel capacities at Angul (leading to economies of scale) and increasing use of cheaper coal from captive Sarda mines. And, this trend is expected to continue.

Better steel realisations, both in India and Oman, too, helped. Steel price hikes in India (prior to lockdown) and focus on value-added products (rails, specialty plates) improved realisations. Thus, despite loss of sales at the end of