BACKGROUND
Jindal Stainless, a part of the $ 18 billion USD, OP Jindal group is the largest integrated
manufacturer of stainless steel in India and is ranked amongst the top 10 stainless steel manufacturers in the world, with a capacity of 1.8 million tons.
POSITIVES
Jindal Stainless, a part of the $ 18 billion USD, OP Jindal group is the largest integrated
manufacturer of stainless steel in India and is ranked amongst the top 10 stainless steel manufacturers in the world, with a capacity of 1.8 million tons.
| JSL product range includes: Ferro Alloys, Stainless Steel Slabs, Blooms, Hot Rolled Coils, Plates and Cold Rolled Coils/ Sheets, Stainless Steel Strips for Razor Blade Steel and Coin Blanks for mints in India & EU. |
FINANCIAL PERFORMANCE JSL’s (Standalone) gross revenue for the financial year ended 31st March, 2014 at `12,942 crore as against `11,091 crore in fy 12-13, has been highest ever, a growth of 17% year-on-year, mainly due to increased volume of sales at the new plant at Jajpur. Exports sales surged to `3,482 crore from `3,220 crore in fy 12-13 with year-on-year growth of 8% and Domestic sales grew by 20% to `9,460 crore from `7,871 crore in fy 12-13. Profit before depreciation, interest and taxes stood at `886 crore as against `615 crore in fy 12-13. |
Today with a crude stainless steel production of
3 mmt, India ranks as the third largest producer
and second largest consumer of Stainless Steel.
Over the past 5 years imports from China
have gone up by close to 700%. Apart from
dumping activities, large scale circumvention of
import duties is also rampant.
But, with new government promising to focus on
growth of domestic manufacturing and on the
infrastructure sector,stainless steel sector will get a boost.
Strong sales push in hitherto
less penetrated market segments like nuclear
power, industrial, process industries, oil & gas and
kitchenware segments in domestic market
contributed significantly to this growth.Special drive has been organized in hitherto
untapped segments like elevators, pumps,
plumbing, sugar, rice and petrochemical industries.
Promoters stake has increased.
NEGATIVES
Company has low interest coverage ratio.
Company has a low return on equity of -28.12% for last 3 years.
Contingent liabilities of Rs.5134.92 Cr.
Promoters have pledged 71.84% of their holding
Highly recommended at cmp 41 price right for medium to long term perspective.
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