India's Jindal SAW posts Q1 profit rise as Middle East orders help

Jindal Saw

29/07/2024 14:04

BENGALURU, July 29 (Reuters) - India's Jindal SAW  JIND.NS  reported a surge in first-quarter profit on Monday
as higher orders from the Middle East and North Africa offset frail domestic demand. 
    The company which makes pipes for the energy, transportation and water sectors, said its consolidated profit after
tax grew 66% to 4.41 billion rupees (around $53 million in the three months ended June 30. 
    
    
    KEY CONTEXT
    Jindal SAW's orders from the MENA region contributed to 32% of the total order book in the quarter. Its sales volume
of iron and steel pipes grew 8% to 400,000 metric tonnes. 
    However, steel firms' earnings were hit by muted domestic demand as government spending in manufacturing and
construction sectors took a hit due to the national election which took place in the reporting quarter.
    Increased manufacturing and construction demand had boosted earnings for steelmakers in the past year, ahead of the
elections.
    Industry majors, JSW Steel  JSTL.NS  and Jindal Steel  JNSP.NS  reported smaller profits in the quarter on muted
demand. 
    
    PEER COMPARISON 

                                  Valuation (next 12     Estimates (next 12    Analysts' sentiment              
                                  months)                months)                                                
                      RIC         PE     EV/EBITDA       Revenue     Profit    Mean     No. of   Stock to       Div
                                                         growth (%)  growth    rating*  analyst  price          yield
                                                                     (%)                s        target**       (%)
 Jindal SAW            JIND.NS    10.11  6.70            8.60        5.06      Strong   2        0.83           0.69
                                                                               Buy                              
 APL Apollo Tubes      APLA.NS    36.34  23.55           22.34       38.95     Buy      13       0.85           0.34
 Ratnamani Metals      RMT.NS     33.45  22.97           16.87       19.63     Buy      3        1.00           0.39
 and Tubes                                                                                                      
 JSW Steel             JSTL.NS    16.12  8.65            11.50       37.29     Hold     28       1.00           0.81
 
    
    * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
    ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    
    APRIL-JUNE STOCK PERFORMANCE 
    
    
    
    -- All data from LSEG IBES
    -- $1 = 83.7264 Indian rupees

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Jindal Saw Q1    https://tmsnrt.rs/3Yhk5Xs
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 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))