Shares of Jindal Steel & Power (JSPL) declined 3 percent in the opening trade on Thursday as company’s net loss increased in the quarter ended March 2018.
The company reported a consolidated loss of Rs 424.69 crore for the quarter ended on March 31, 2018 due to higher expenses and finance cost. It had posted a consolidated loss of Rs 100.01 crore in the year-ago period.
The company’s consolidated income increased to Rs 8,599.28 crore in January-March 2018 over Rs 6,756.07 crore in January-March quarter of FY2016-17.
Its expenses rose to Rs 8,493.57 crore in the last quarter of 2017-18 against Rs 7,074.10 crore in the year-ago period on increased excise duty and finance cost.
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Morgan Stanley has maintain equal-weight rating on stock with a target of Rs 260 per share.
According to the firm, the company turned PBT positive after 13 quarters, while its debt has peaked & gradual deleveraging likely.
Citi reiterated buy rating on the stock with a target of Rs 401 per share.
The company’s power business was impacted by coal shortage, however steel business did well in 4QFY18, Citi added.
At 09:20 hrs Jindal Steel & Power was quoting at Rs 254.35, down Rs 7.25, or 2.77 percent on the BSE.
With inputs from PTI