Synopsis:Jindal Saw remains in focus amid improving domestic and global pipeline demand, strong order visibility, export momentum and capacity-led margin expansion, supporting a positive medium-term earnings and growth outlook.
The shares of this small cap company majorly engaged in manufacturing LSAW pipes, HSAW pipes, DI pipes, pellets and many more were in focus after brokerage saw upto 30 percent upside potential
With the market capitalisation of Rs. 15,386 Crores, the shares of Jindal Saw Ltd were trading at around Rs. 241 per share which is 10 percent discount from its 52 weeks high of Rs. 268 per share and is trading at a P/E of 12.5 where as industry P/E stands at 20.7
Brokerage view
Elara Capital maintains a positive outlook on Jindal Saw with a target price of Rs. 280, implying nearly 16 percent upside potential, backed by earnings recovery over FY27–FY28, strong order visibility and margin support from expansion.
Demand and Orders
The company is expected to benefit from a revival in domestic infrastructure spending, particularly in the water pipeline segment. Higher demand from oil and gas projects also adds to growth visibility over the coming years.
A major positive is the company’s all-time high order book at ~1.4x trailing volumes, which points to strong execution visibility. This level of order inflow provides confidence in revenue growth and supports the earnings recovery narrative mentioned for FY27–FY28.
Strong Order Visibility
A record order book provides healthy revenue visibility and supports confidence in execution-led growth. This gives the company a strong base for sustained earnings improvement.
Global and Export Tailwinds
Rising global pipeline capex, driven by energy security concerns, remains a key growth driver. Continued investments in infrastructure across international markets are expected to support fresh order inflows.
Increasing exports are helping diversify the revenue mix and reduce dependence on domestic capex. A broader geographic presence also adds stability to future growth prospects.
Capacity and Margin Support
The ongoing capacity expansion acts as a support for margins and operating leverage. As utilization improves, this can strengthen profitability and aid earnings recovery.
Financials:
Revenue from operations has increased on a quarterly basis from Rs. 4234 Crores to Rs. 4943 Crores, up 16 percent. Operating profit has increased from Rs. 451 Crores to Rs. 613 Crores, up 36 percent and net profit has increased from Rs. 139 Crores to Rs. 248 Crores, up 78 percent
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