Stock Crash: Shares of Jindal Steel and Power Limited (JSPL) witnessed a massive decline of more than 12% on Friday, January 31. The company had released its December quarter results after the market closed on Thursday, after which investors were disappointed.

Decline in profit
JSPL's standalone EBITDA per tonne stood at ₹10,668, which was lower than CNBC-TV18's estimate of ₹11,230. Moreover, the company's earnings remained stable, but profits halved and margins also declined by 600 basis points. Profit of this big company of the country fell sharply - decline of about Rs 1000 crores Investors' concerns increased JSPL is planning to make capital expenditure (Capex) of ₹23,400 crores between FY 2026 and 2028 to expand its production capacity from 9.6 MTPA to 15.9 MTPA. However, this capex plan has raised concerns among investors, as the company's net debt (total debt) increased to ₹ 13,551 crore in the December quarter from ₹ 12,464 crore in the previous quarter and ₹ 11,203 crore at the end of FY 2024. Brokerage house opinion Morgan Stanley has an "overweight" rating on JSPL and a target price of ₹ 1,200, but it has also expressed surprise at this additional capex plan. Citi has given a "sell" rating to JSPL and a target price of ₹ 765. Citi said in the note that "new capex plans without any proper capacity addition may raise investors' concerns." Heavy fall in share price JSPL shares are in a 10% lower circuit at ₹ 756.06 and have now fallen 31% from its highest level of ₹ 1,056. Currently, out of 28 analysts, 20 have recommended "BUY", 4 have recommended "HOLD" and 4 have recommended "SELL". Investors' eyes on future signals According to market experts, investors will keep an eye on the direction of JSPL's debt management and capex plan going forward. If the company does not improve its financial performance, the pressure on the shares may continue.