In Tuesday’s trading session, the shares of India’s leading stainless steel manufacturer surged by 2% to Rs. 695.9 on BSE, after the company secured a BrahMos Aerospace contract to manufacture high-end stainless steel.
At 11:23 a.m., the shares of Jindal Stainless Limited were trading in the green at Rs. 687.45, up by 0.73 percent, compared to its previous closing price of Rs. 682.45, with a market cap of Rs. 56,607 crores.
What’s the News:
According to the latest regulatory filings with the stock exchanges, Jindal Stainless secured accreditation by BrahMos Aerospace Pvt. Ltd. as a qualified vendor for the manufacturing of high-end stainless steel.
Under the contract, Jindal Stainless, Hisar, will manufacture and supply customised stainless steel and speciality low-alloy steel sheets and plates from the company’s Hisar plant in Haryana that meet the technical requirements of BrahMos Aerospace.
The approval comes after a stringent quality and credentials audit conducted by BrahMos to enlist Jindal Stainless, Hisar, as a supplier for its cruise missiles.
Previous Orders:
Previously, Jindal Stainless has supplied materials for projects under the DRDO and ISRO, including India’s lunar mission Chandrayaan, PSLV, GSLV Mk3, nuclear submarine missile system, missile canisters for various missile programmes, and exhaust units in rockets.
The company is also planning to meet the material requirements of upcoming missile programmes.
According to 20th June filings, Jindal Stainless exported stainless steel to manufacture 100 ‘Made in India’ freight wagons.
The wagons were made up of grade IRSM 44 stainless steel, specially developed by Jindal Stainless for Indian Railways freight stock, and were exported from Gujarat’s Deendayal Port to South Africa’s Mozambique’s Port of Nacala.
On July 30th, the company’s Board approved Rs. 5,000 crore fundraising through the issuance of various equity and equity-linked instruments.
Financials:
Financially, the company experienced a fall in its revenue from operations, showing a year-on-year decline of 7.4 percent from Rs. 10,184 crores in Q1 FY23-24 to Rs. 9,430 crores in Q1 FY24-25.
Similarly, its net profit decreased during the same period from Rs. 738 crores to Rs. 646 crores, indicating a decline of 12.5 percent YoY.
On a year-on-year basis, the EBITDA jumped from Rs. 1,192 crores in Q1 FY23-24 to Rs. 1,212 crores in Q1 FY24-25, representing a growth of 2%.
Stock performance:
The stock has delivered positive returns of nearly 70.3 percent in one year as well as around 19.5 percent returns in the last six months. So far in 2024, the shares of Jindal Stainless have given about 19.4 percent of positive returns.
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About the company:
Jindal Stainless Limited is involved in the business of manufacturing stainless steel flat products in austenitic, ferritic, martensitic and duplex grades.
The company’s product range includes ferroalloys, stainless steel slabs and blooms, hot rolled coils, plates and sheets, cold rolled coils and sheets, specialty products such as razor blade steel, precision strips and long products.
Written by Shivani Singh
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