The shares of Jindal Saw zoomed 8.48 percent on Thursday’s early trades to reach a fresh 5-year high of ₹ 177.10 apiece on the National Stock Exchange (NSE) after volumes jumped at the counter. 7.427 million shares changed hands at the counter on Thursday, against 4.341 million shares on Wednesday.
In the past three months, the company’s share price has zoomed 91 percent from 91.25 apiece to the current level of ₹ 174.30 apiece. Its shares are on the verge of giving multibagger returns to those who had invested three months ago.
The company’s shares have been on a roll ever since it reported a multifold rise (210 times) in its consolidated profit after tax at ₹ 143.23 crores in the December 2022 quarter (Q3FY23), on the back of strong operational performance. It had reported a net profit of ₹ 68 lakhs in the same quarter a year ago.
Jindal Saw’s revenue from operations during the quarter under review grew 48.6 percent to ₹ 5157.9 crores against ₹ 3471.0 crores in the corresponding period a year ago.
Jindal Saw is the flagship company of the PR Jindal Group and it is a manufacturer and supplier of iron. In its latest rejig, the company was added to the MSCI India Domestic Small Cap Index. This is particularly an important development as many global fund managers use this index as a benchmark.
Its profitability improved significantly on account of positive demand off-take and superior execution across key pipe categories. However, it was impacted by the high volatility in foreign exchange rates (Indian rupee to US dollar) during the said quarter.
Jindal Saw is a leading global manufacturer and supplier of iron & steel pipe products, pipe accessories and pellets, with manufacturing facilities in India, the USA and Abu Dhabi (United Arab Emirates).
The company believes that the future of the global steel pipe market looks promising with opportunities in oil and gas, water and wastewater, power generation, automotive, and other industrial sectors.
The government’s focus on the ‘Nal Se Jal Yojana’ will help the company to maintain momentum in the DI Segment. Moreover, the pipe industry in India is doing well on account of improved demand and normalisation in input prices.
Written by Simran Bafna
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