JSPL is currently placed at an inflection point where it is witnessing positive changes like (a) end of capex cycle and equipped with fully operational Angul plant with 5 MTPA capacity, (b) increasing demand of power going forward with expectation of signing new PPA at JPL, (c) monetization of few assets like disinvestment of Tamnar- (EUP-I) 1,000 MW power plant and planning for IPO of OMAN plant. Considering the company’s recent developments and favorable business environment, we believe JSPL is trading at attractive valuation to its peer, hence we recommend ACCUMULATE on the stock with Target Price of `327 based on asset based approach of Steel segment on EV/Tonne basis and Power segment on EV/MW basis.
