(Reuters) -India’s Jindal Stainless reported a 32.6% rise in second quarter profit on Monday, on strong growth in volumes driven by improved domestic demand conditions. The O.P. Jindal Group company’s consolidated profit after tax rose to 8.08 billion Indian rupees (about $92 million) for the quarter ended September 30, as compared to 6.09 billion rupees last year.
Its net revenue rose 11.4% to 108.93 billion rupees.
KEY CONTEXT
Local demand for stainless steel — used in transport, construction, appliances and industrial goods — stayed firm in the July-September quarter, buoyed by strong manufacturing activity, infrastructure rollout and steady government spending.
The company said in August that the launch of an anti-dumping investigation by the government into cheap stainless steel imports had been delayed due to trade uncertainty stemming from U.S. tariffs on Indian goods.
Analysts said that Jindal Stainless stands to gain the most from a potential anti-dumping duty on cold-rolled stainless steel flat imports from China, Indonesia and Vietnam.
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 Stainless 17.17 10.91 12.39 23.98 Buy 12 0.93 0.41
Tata Steel 15.39 7.88 7.05 60.97 Buy 29 1.04 1.98
JSW Steel 20.64 10.33 11.63 67.01 Hold 32 1.01 0.24
Steel Authority of 14.70 7.59 7.87 32.44 Hold 13 1.13 1.13
India
* 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
— $1 = 87.8950 Indian rupees
(Reporting by Manvi Pant in Bengaluru; Editing by Ronojoy Mazumdar)
