Its better to watch and observe. Company’s expansions plans are expected to go live in next 2-3 years.
Current business is operating near its capacity. No major boost in revenues with this setup.
Cost optimizations are going on, so some margin improvements can be expected.
Company’s Q1 was low, expected to make up with remaining quarters.
There is some great potential with its subsidiaries, some earning 2k cr + revenues.
Can have a tracking position, valuations are very reasonable. No major downside.
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The worst is behind. No major downside risks and price and valuation is already very attractive.
Yearly profit= 1500 crores
Market cap= 13000 crores
Order book= 13,500 crores + UAE $270mn
Reserves = 11,400 crores
Last 2 year profit= 3420 crores
Last quarter= 405 crores
They’ll be doing 500+ crs of PAT every qtr till the new facilities in GCC come online which will kick in the next phase of growth and re-rating. Negligible LT debt, working capital will go down and ongoing capex comes online.
Solid defensive pick which is very cheap. So if you have any idle cash, I would blindly bet on Jindal Saw. Solid, steady profit and cash flow generating machine.
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While I agree on all the points, current market rewards growth. And in terms of growth, no boost in near term. And consdiering company’s history with debt, company is very caution this time. But due to that, the growth opportunity are very limited in near term. This is the only steel company that hasnt announced any major capex.
I aslo blindly bet on this scrip but no major growth in near term.
Disc: invested with 5% capital
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Anyone still tracking this? Massive underperformance, company seems to be struggling. Stock price is in a strong downward momentum, doesn’t seems to be stopping at all. Might become 2 digits by April at this pace.
Peers lile Welspun on other hand posted outstanding results. I guess difference in management quality, same sector but one struggled hard, one outperformed.
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No that won’t happen. It’s cyclical. OnGoing spends on water segment have collapsed post defence spending . So u know that priority has shifted . It will come back..it’s cyclical..Goi is pushing work to state governments as last time there was significant fraud . State governments have never cared about water unless the can earn money and election time they give handouts ..all are in trouble . At some point the water pipe will be needed once all the irrigation infra and dams come back ..we have to wait . 150 is possible but that whey u start buying with q 3 year wait. Also court case is causing some sentiment .
I think ME will pick up and sales will start going there
