JSPL Extends Rally to Second Day, Shares Jump 6%

Shares in Jindal Steel & Power (JSPL) jumped over 6 per cent to an intraday high of Rs 208 on Friday, extending Thursday's 26 per cent rally after the company won back some mines cancelled by the Supreme Court last year.

JSPL in the ongoing coal auction has won back the Gare Palma IV/2 and 3 coal blocks, which serves 50 per cent of its annual coal requirement, analysts say.

Coal from these blocks will primarily be used for supply to JSPL's 1000 MW Tamnar-1 power plant in Chhattisgarh.

Brokerages have changed their outlook on JSPL post these two coal block wins. Macquarie maintains outperform on the stock with a target price of Rs 262 per share, which is 34 per cent higher than Thursday's closing price. The brokerage says a re-rating of the stock could be on the cards.

Citi has also maintained buy on the stock with a target price of Rs 247 per share. Citi says the coal block wins have been a big relief for JSPL.

However, Deutsche Bank maintains hold on the stock with a target price of Rs 186 per share.

Shares in JSPL closed 0.7 per cent lower at Rs 194 apiece in-line with the broader Nifty.