NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Centrum Broking Report
Jindal Stainless Ltd. reported in-line consolidated Ebitda of Rs 11.8 billion (our estimate: Rs 12 billion) down 2% QoQ as well as Ebitda/tonne in-line with our estimate at Rs 21,014 (our estimate: Rs 21,362/tonne) remain flattish QoQ. The decline in Ebitda was largely due to increase in prices partially offset by decline volume.
The sales volume decline by 2.3% QoQ led by weak domestic demand recovery in export market but realisation/tonne increase by 6% QoQ due to increase in prices. Standalone Ebitda/tonne reported at Rs 17,833/tonne (our estimate: Rs 17,799/t), remain flattish QoQ. The consolidated net debt decrease by Rs 5.28 billion (11% QoQ) to Rs 44.2 billion.
Due to muted export demand, we revise FY25E volume growth to 10% from earlier 20% and resulting in 20% decline our Ebitda estimate. However, we introduce FY27E and remain positive outlook for long term SS demand. Hence, we estimate Jindal Stainless profitability to improve with revenue/Ebitda/PAT growing at 20%/21%/29% CAGR over FY24-27E.
Further, strong RoE of 23% and net debt/Ebitda ratio of 0.2x by FY27 if no further capex is announced. The strong earnings growth and promising outlook with forward integration and raw material security, we recommend Buy rating and increase our target price to Rs 841 (Earlier: Rs 816/share), valuing at nine times H1 FY27E enterprise value/Ebitda.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
Apollo Hospitals Q2 Results Review - Hospital Business, Apollo 24/7 Drive Earnings: Motilal Oswal
Nov 08, 2024
Jindal Stainless Get A 'Buy' As Anand Rathi Initiates Coverage
Nov 05, 2024
Jindal Stainless: White Goods And Two-Wheelers To Outperform | NDTV Profit
Oct 18, 2024
Jindal Stainless Q2 Results: Profit Falls 20%, Margin Contracts
Oct 17, 2024
POPULAR