Regional prices continue to surge as raw material prices like coking coal, iron ore will go higher.

Also, improved liquidity in the system has driven local steel demand higher which saw December exports the lowest in last five months to 0.77MT.

JSPL can benefit from this play as it has already ramped up its capacity to 1.6MT (22% YoY growth).

Product mix is inclined towards long and specialty products like rails and structural products.

Operational free cash flow will continue to improve leverage levels. Net debt/EBITDA has significantly declined in FY19 to 4.8x vs 12.7x in FY19.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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