The Economic Times daily newspaper is available online now.

    Buy Jindal Stainless, target price Rs 200: Centrum Broking

    Synopsis

    Jindal Stainless Ltd., incorporated in the year 1980, is a Small Cap company (having a market cap of Rs 6066.85 Crore) operating in Metals - Ferrous sector.

    buyShutterstock.com
    Promoters held 69.87 per cent stake in the company as of 31-Mar-2022, while FIIs owned 15.1 per cent, DIIs 6.31 per cent.
    Centrum Broking has buy call on Jindal Stainless with a target price of Rs 200. The current market price of Jindal Stainless Ltd. is Rs 115.35. Time period given by analyst is one year when Jindal Stainless Ltd. price can reach defined target.

    Jindal Stainless Ltd., incorporated in the year 1980, is a Small Cap company (having a market cap of Rs 6066.85 Crore) operating in Metals - Ferrous sector.

    Jindal Stainless Ltd. key Products/Revenue Segments include Steel, Job Work, Sale of services, Export Incentives, Other Operating Revenue and Gases for the year ending 31-Mar-2021.


    Financials
    For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 6582.84 Crore, up 15.85 % from last quarter Total Income of Rs 5682.37 Crore and up 67.66 % from last year same quarter Total Income of Rs 3926.30 Crore. Company reported net profit after tax of Rs 749.88 Crore in latest quarter.

    Investment Rationale
    The brokerage reduces FY23 EBITDA by 14% to Rs19.6bn to factor in hit of 15% export duty levied by the GoI on 21st May 2022. The number factors in EBITDA/t of Rs17,882 in FY23E and Rs17,439 in FY24E. It keeps FY24 EBITDA unchanged. It also factors in additional capex of Rs15bn in each of FY23 and FY24 assuming the new 2mtpa Blast furnace will be housed under JSL unlike earlier planned under its Associate company, Jindal United Steel Corporation (JUSCO). We also reduce target EV/EBITDA multiple to 5x from 5.5x earlier. With above changes, the target price is reduced to Rs200 (earlier Rs272), valuing at 5.0x FY24E EV/EBITDA. Reiterate BUY.

    Promoter/FII Holdings
    Promoters held 69.87 per cent stake in the company as of 31-Mar-2022, while FIIs owned 15.1 per cent, DIIs 6.31 per cent.



    (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in