The power of steel - from Prabhudas Lilladher
The power of steel - from Prabhudas Lilladher
Valuation
We believe that steady earnings from power would change the perception
of the business as a whole. This would ultimately change the valuation
parameters. Since a pure steel business traditionally get lower valuation
multiples compared to power business; Change in business profile of
target companies would also get reflected in higher valuation multiples.
We initiate coverage on Jindal Steel & Power Ltd. with an Outperformer
rating with 12-month price target of Rs.6,414, implying 13.4% potential
upside. Monnet Ispat with a BUY rating with 12-month price target of
Rs.533, implying 46.4% potential upside. Raipur Alloys and Steel with
a BUY rating with 12-month price target of Rs.462, implying 52.5%
potential upside.
See attached report
