Buy Jindal Drilling & Industries, target price Rs 360 : HDFC Securities

HDFC Securities has buy call on Jindal Drilling & Industries with a target price of Rs 360. The current market price of Jindal Drilling & Industries is Rs 296.4. Time period given by analyst is 2-3 quarters when Jindal Drilling & Industries price can reach defined target.

Jindal Drilling & Industries, incorporated in the year 1983, is a Small Cap company (having a market cap of Rs 859.29 Crore) operating in Gas & Petroleum sector.

Jindal Drilling & Industries key Products/Revenue Segments include Oil Drilling & Exploration for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 155.58 Crore, up 3.78 % from last quarter Total Income of Rs 149.92 Crore and up 43.51 % from last year same quarter Total Income of Rs 108.41 Crore. Company has reported net profit after tax of Rs 35.75 Crore in latest quarter.

The company’s top management includes Mr.D P Jindal, Mr.Raghav Jindal, Mr.Vijay Kumar Kaushik, Mrs.Saroj Bhartia, Mr.Raj Kamal Aggarwal, Mr.S K Singhal, Mr.Sunil Arora. Company has Kanodia Sanyal & Associates as its auditors. As on 30-06-2022, the company has a total of 3 Crore shares outstanding.

Investment Rationale
The company has managed to establish longstanding relationship with India’s leading oil exploration company (ONGC). The company has been able to win contracts/renewals in the past on consistent basis. Its many years of operational experience and excellence on the back of its accomplished staff and crew has helped in achieving nearly 100% efficiency standard across its rigs.

Promoter/FII Holdings
Promoters held 67.42 per cent stake in the company as of 30-Jun-2022, while FIIs owned 0.7 per cent, DIIs 0.0 per cent.