Operational turnaround seen ahead for JSPL

Improving demand and expansion in steel segment is expected to drive profit growth

A strong December quarter performance and expectations of a turnaround for its businesses saw the Jindal Steel and Power Limited stock gain 7.8 per cent on Monday. Brokerages have been upgrading the stock over the last few days.

For the power business, improved coal availability, cost controls, and reduced supply to exchanges (where realisations from sale of each unit are lower) have helped improve the performance of the segment at a time when power demand continues to be weak. In the steel business, tailwinds such as anti-dumping duty and higher global prices should improve realisations, while cost reduction will aid