Buy Jindal Stainless, target price Rs 270: ICICI Securities

ICICI Securities has buy call on Jindal Stainless with a target price of Rs 270. The current market price of Jindal Stainless Ltd. is Rs 209.2.Time period given by analyst is year when Jindal Stainless price can reach defined target.


Jindal Stainless, incorporated in the year 1980, is a Small Cap company (having a market cap of Rs 11006.50 Crore) operating in Metals - Ferrous sector.


Jindal Stainless key Products/Revenue Segments include Steel, Sale of services, Export Incentives, Job Work and Other Operating Revenue 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 5621.97 Crore, up 2.39 % from last quarter Total Income of Rs 5490.91 Crore and up 11.52 % from last year same quarter Total Income of Rs 5041.26 Crore. Company has reported net profit after tax of Rs 151.84 Crore in latest quarter.

The company’s top management includes Mrs.Savitri Devi Jindal, Mrs.Arti Luniya, Mr.Jayaram Easwaran, Ms.Bhaswati Mukherjee, Mr.Suman Jyoti Khaitan, Mr.Tarun Kumar Khulbe, Mr.Abhyuday Jindal, Mr.Ratan Jindal, Mrs.Savitri Devi Jindal, Mr.Parveen Kumar Malhotra, Mrs.Arti Luniya, Mr.Jayaram Easwaran, Ms.Bhaswati Mukherjee, Mr.Suman Jyoti Khaitan, Mr.Tarun Kumar Khulbe, Mr.Abhyuday Jindal, Mr.Ratan Jindal, Mr.Parveen Kumar Malhotra. Company has Walker Chandiok & Co. LLP as its auditors. As on 30-06-2022, the company has a total of 53 Crore shares outstanding.

Investment Rationale
The acquisition of JUSL is likely to improve margins by ~Rs4,000/t in the brokerage's view. Taking cognisance of regulatory overhang being removed, the brokerage raises its valuation multiple by 10% to 5.5x.

Promoter/FII Holdings
Promoters held 70.1 per cent stake in the company as of 30-Jun-2022, while FIIs owned 13.77 per cent, DIIs 5.85 per cent.