JSPL: Steeling Up for a Breakout Move

JINDALSTEL



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1. Technical Analysis (Chart)
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• Trend: Strong Bullish (Higher Highs, Higher Lows).
  
• Breakout Zone: ₹1,084. A weekly close above this enters uncharted territory (Blue Sky Zone).
  
• Immediate Support: ₹1,002. The trend remains positive as long as the price holds above this.
  
• Major Support: ₹770. Best accumulation zone for long-term investors.
  
• Price Action: Currently consolidating at the top. A "Red Candle" at resistance suggests minor profit booking before the next leg up.
  

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2. Fundamental Analysis (Q2 FY26 Data)
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• Recent Earnings: Weak. Net Profit fell ~26% YoY to ₹635 Cr due to higher input costs, though Revenue was stable at ₹13,505 Cr.
  
• Valuation: Expensive. Trading at a P/E of ~39x (vs Industry ~20x). The market is pricing in future growth, leaving little room for error.
  
• Margins: Compressed to ~17-18% (down from ~24%).
  
• Debt: Controlled. Net Debt reduced to ~₹14,156 Cr, showing good balance sheet discipline despite heavy Capex.
  

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3. Future Growth (The "Why" to Buy)
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• Angul Expansion: Capacity recently jumped from 6 MTPA to ~12.6 MTPA. This volume doubling is the key revenue driver for FY26-27.
  
• Product Shift: Moving to Flat Steel (Hot Strip Mill). This commands higher margins than construction steel.
  
• Raw Material Security: Owns captive coal mines (Utkal-C), protecting it from global coal price shocks better than peers.
  
• 2030 Vision: Aiming for 25 MTPA capacity, targeting to be the world’s largest single-location steel plant.
  

⚠️ Disclaimer:
This analysis is for educational and informational purposes only.
We are not SEBI-registered analysts or advisors.
This is our personal view based on available data and market trends.
Please consult your SEBI-registered investment advisor before making any investment or trading decisions.
You are solely responsible for any financial decisions you make based on this content.


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Trade Secrets By Pratik
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