India's Jindal SAW posts 32.5% jump in Q2 profit

Jindal Stainless

18/10/2024 13:23

BENGALURU, Oct 18 (Reuters) - India's Jindal SAW  JIND.NS  reported a rise in second-quarter profit on Friday, as demand in its key Middle East and
North Africa (MENA) markets remained steady while expenses came in nearly flat.
    The company, which makes steel pipes for the energy, transportation and water sectors, said its consolidated profit after tax grew 32.5% to 5 billion
rupees ($59.5 million) in the three months ended Sept 30.
    
KEY CONTEXT
    
    Jindal SAW's quarterly raw materials expenses dropped 14.4% from a year ago.
    The falling prices of iron ore and coking coal, key raw materials for steel firms, were expected to partially offset the weak steel prices, analysts had
said.
    Steel prices in India plunged to a more than three-year low in August, as the world's second-biggest crude steel producer remained a net importer of the
metal.
    India's stainless steel maker Jindal Stainless  JIST.NS  posted a decline in second-quarter profit on lower steel prices on Thursday. Industry majors
JSW Steel  JSTL.NS  and Jindal Steel  JNSP.NS  are yet to report their September-quarter results.
        
    
PEER COMPARISON
    
                            Valuation (next 12       Estimates (next 12 months)            Analysts' sentiment                                 
                            months)                                                                                                            
                   RIC      PE         EV/EBITDA     Revenue growth (%)  Profit growth     Mean rating*  No. of       Stock to price target**  Div yield (%)
                                                                         (%)                             analysts                              
 Jindal SAW        JIND.NS  12.30      7.90          4.32                7.94              Strong Buy    2            0.99                     0.55
 APL Apollo Tubes  APLA.NS  39.81      25.75         22.01               34.96             Buy           13           0.96                     0.35
 Ratnamani Metals  RMT.NS   32.36      23.52         14.99               20.83             Buy           3            0.93                     0.38
 and Tubes                                                                                                                                     
 JSW Steel         JSTL.NS  16.96      8.94          11.99               43.68             Hold          30           1.02                     0.74
 
* 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
            
JULY-SEPTEMBER STOCK PERFORMANCE
   
 
    
-- All data from LSEG IBES
-- $1 = 84.0430 Indian rupees


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Jindal Saw- July-Sept performance    https://tmsnrt.rs/4f4P6D4
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 (Reporting by Anuran Sadhu in Bengaluru; Editing by Sumana Nandy)
 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))