Synopsis:
Jindal Stainless rected when its promoter entity, JSL Overseas Holding Limited, had bought 11.65 lakh shares, taking its total shareholding in the company from 16.30 percent to 16.16 percent.
The shares of the largest manufacturer of stainless steel are in focus after the promoter increased its stake in the business, highlighting the promoter’s confidence in the company. In this article, we will dive more into the details.
With a market capitalization of Rs 61,824 crore, the shares of Jindal Stainless Ltd made a day high of Rs 753.45, up by 0.65 percent from its previous day closing price of Rs 748.65 per share. Over the past five years, the stock has delivered a multibagger return of 1,554 percent.
About the deal
JSL Overseas Holding Limited, which is part of the promoter group for Jindal Stainless Limited (JSL), has increased its stake in the company by purchasing 11,65,493 equity shares.
Before this latest transaction, JSL Overseas Holding Limited owned 13,32,66,100 shares, giving it a 16.16 percent stake in Jindal Stainless Limited. After the purchase, their total shareholding has risen to 13,44,31,593 shares, which translates to a 16.30 percent stake in the company.
The acquisition was carried out entirely through open market transactions on the NSE and BSE.This action slightly enhances the promoter group’s overall control in Jindal Stainless Limited, reflecting their ongoing confidence in the company’s growth potential.
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Financial Highlights
The company reported a revenue of Rs 10,207 crore in Q1 FY26, up by 8 percent from its Q1 FY25 revenue of Rs 9,430. Additionally, revenue grew slightly from Rs 10,198 crore in its previous quarter.
Regarding its profitability, the company reported a net profit of Rs 715 crore in Q1 FY26, up by 11 percent from its Q1 FY25 net profit of Rs 646 crore. Additionally, revenue grew by 21 percent from Rs 590 crore in its previous quarter.
The stock delivered an ROE and ROCE of 16.15 percent and 18.16 percent respectively, and is currently trading at a P/E of 24x as compared to its industry average of 22.97x.
Jindal Stainless Limited (JSL) stands out as one of India’s top stainless steel manufacturers, offering a diverse array of stainless-steel flat products for both local and global markets. Their product lineup features everything from ferro alloys and slabs to blooms, hot-rolled and cold-rolled coils, plates, sheets, razor blade steel, precision strips, and long products. JSL serves a variety of industries, including automotive, railways and transport, engineering, consumer goods, and architecture & construction.
Written by Satyajeet Mukherjee
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