Shares of this Jindal Group stock under the ‘small-cap’ category are in focus after a well-known Investment Bank and Mutual Fund, on 10th May 2024, bought a stake in the company via a Block Deal. Year-to-date, the company’s stock has gained nearly 25 percent for its holders.
With a market capitalization of Rs 16,675.18 crores, the stocks of Jindal Saw Limited started their trading session on Monday at Rs 538.95 and currently trades at Rs 521.50. The company’s stock witnessed an intra-day high price of Rs 538.95, exhibiting a gain of around 1.20 percent compared to the previous close of Rs 532.55 apiece.
The company shares were in focus today after ‘Societe Generale’ and ‘ITI Mutual Fund’ bought a stake in the Jindal Group company on Friday, 10th May 2024.
As per the Block Deal data available with the National Stock Exchange (NSE), Societe Generale, one of Europe’s leading financial services groups, bought 2 lakh equity shares of Jindal Saw Limited at an average trading price of Rs 525 per share. Moreover, ITI Mutual Fund bought 2.15 lakh equity shares of the company at the same average trade price.
On the other hand, Cresta Fund Limited emerged as the counterparty selling 4.15 lakh equity shares of Jindal Saw Limited at an average trading price of Rs 525 per equity share.
Having a glance at the recent financials, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, reported underperforming numbers with the former reducing from Rs 5,656 crores during Q3FY24 to Rs 5,425 crores during Q4FY24, and the latter, during the same period, slipping from Rs 512 crores to Rs 480 crores.
According to the latest presentations, the company’s total order book stands at around $1.5 billion with 70 percent orders from Domestic sources and the remaining 30 percent from exports. In addition, the company focuses on cost reduction, innovation, and productivity improvement.
The company expects its volumes to grow at 10-15 percent along with market-driven pricing. It has placed a Capex of around Rs 500-600 crores for FY25. Moreover, the demand for spiral pipes in the ‘Middle East’ region is good due to various infrastructure projects.
Jindal Saw Limited is an India-based company engaged in manufacturing and supplying iron and steel pipes, fittings, and pellets. The company’s products are used for various purposes, some of which include oil and gas exploration, power generation, as well as other industrial applications. It operates in India and overseas, covering the United States, the United Arab Emirates, Italy, etc.
Written by Amit Madnani
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