*MNCL Research: Jindal Stainless ltd. (JSL) - EU imposes anti-subsidy duties on cold rolled flat stainless steel imports from India*
_CMP: Rs180; Fair value: Rs260; MCap: Rs90.7bn_
~ EU has imposed additional duties called anti-subisdy duties (ASD) on imports of cold rolled flat stainless steel products from India to counter the subsidy benefits (preferential loans, duty exemptions and benefits on raw materials) received by Indian stainless producers. 40% of JSL+JSHL exports are sold in Europe.
~The ASD is 4.3% for Jindal Stainless and Jindal Stainless Hisar ltd. (JSHL) and 7.5% for other stainless steel exporters.
~ This duty will be over and above the anti-dumping duties (ADD) imposed last year Nov’21 of 13.9%. However, this ADD has now been reduced to 10% for JSL and JSHL.
*Impact:* The overall duty (ASD + ADD) turns out to be roughly same i.e. 14.3% now vs. 13.9% before for imports to EU from JSL and JSHL India. Similarly, for exports from Jindal Stainless PTE Indonesia ADD + ASD remains at rougly 20%. Therefore, we don’t expect any substantial impact from this additional levying of duties.
Regards,
Sahil Sanghvi @ Monarch Networth Capital