Jindal Steel Shares Dip After Q1 Profit Decline
The company reported a 21% fall in profit to Rs 1,338 crore in the quarter-ended June 30, 2024.
Jindal Steel and Power Ltd.'s shares dipped on Thursday after its first quarter net profit declined.
The company reported a 21% fall in profit to Rs 1,338 crore in the quarter-ended June 30, 2024, as compared with Rs 1,692 crore over the same period last year, according to an exchange filing on Wednesday. Bloomberg analysts had estimated a Rs 1,319-crore net profit.
Jindal Steel and Power (Mauritius) Ltd., along with other subsidiaries, has been incurring loss over the years.
The steel manufacturer reported an 8% YoY rise in the top line at Rs 13,618 crore for the April-June quarter, against Rs 12,588 crore in the same quarter last year, beating the Bloomberg estimate of Rs 13,194 crore.
Shares of the company fell as much as 5.29% before paring loss to trade 4.85% lower at Rs 925.30 apiece, as of 10:25 a.m. This compares to a 0.56% decline in the NSE Nifty 50.
The stock has risen 39.09% in the last 12 months and 23.31% year-to-date. Total traded volume so far in the day stood at 3.5 times its 30-day average. The relative strength index was at 29.72, indicating that the stock is oversold.
Out of 27 analysts tracking the company, 16 maintain a 'buy' rating, five recommend a 'hold' and six suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 7.8%.
