ATTACHED DAILY AND MONTHLY CHART OF JINDAL SAW SHOWS INTERESTING PATTERN.
MONTHLY CHART SHOWS A BIG ENGULFING BULLISH CANDLESTICK AFTER THE STOCK BOUNCED FROM STRONG SUPPORT AT 108-109 WHICH HAS TWICE EARLIER PROVIDED GOOD SUPPORT.
DAILY CHART SHOWS HIGHER TOP AND HIGHER BOTTOM FORMATION.
COMMENTS ON CHARTS.
COMING TO TECHNICAL CALL ON JINDAL SAW, ONE CAN BUY AT CMP 128 AND ON DECLINES WITH A STRICT STOP LOSS OF 115 AND TARGETS OF 155-170 AND 185 BASED ON RETRACEMENT LEVELS.
ATTACHED DAILY CHART – DAILY CHART SHOWS A MILD CORRECTION WHICH COULD BE USED TO BUY BASED ON UPTREND VISIBLE ON MONTHLY CHART.
Some imp points from Q3 concall:
1.Q3 was bad on all fronts except revenue growth due to high variations in coal & steel prices, supply chain disruptions.
2. EBITDA margins typical in base case should be 15% & upcycle > 15%, current quarter was 7% only for reasons stated above. Additional price pass on govt / epc contracts was not possible. For private prices have been increased
3. Management believes performance was robust as this was a very challenging quarter & yet they manage to deliver to all customers in a timely manner & increase topline
4.Even in q4 RM prices continue to be erratic but co has procured rm for coming 3-4 months to come over this challenge, this has led to borrowings increase as WC requirement has increased
5.Q4 should be better than this based on observation for 1st month and strategies framed
6.National budget has been encouraging for co for with announcements like linking of rivers, Nal se jal scheme
7. Current order book is 700m $ ideally is between 900-1000m$. Company is conservative in taking orders due to RM price volatility
8.JV with Hunting should be beneficial as it open doors for Nashik plant in global market
9.NTPC hearing is on 15th March
10.Tonnage for Q4 >2.5L & FY22 >10L
11. Satvana ISPAT - co is in midst of NCLT process
