Hi, please look at JSL + JSL Hisar combine for financials N valuation. Try to see how much combined business can throw free cash over next 1-2 years to see what one is buying into today. One major risk factor is of-course over reliance on antidumping duty.
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Great set of nos from JSL, JSHL should also be in similar lines.
- Q4FY21 Top-line of Rs.3914 Cr vs Rs.3585 Cr QoQ (9%) and Rs.3094 Cr YoY (27%)
- Q4FY21 EBITDA of Rs.542 Cr vs Rs. 473 Cr QoQ (15%) and Rs. 222 Cr YoY (242%)
- FY21 Topline of 12,188 Cr vs 12,951 Cr (-6%) ; EBITDA of Rs.1,424 Cr vs Rs.1,139 Cr (25%)
- FY21 EPS of Rs.8.6 vs Rs.1.48
- Interest outflow of Rs.340 Cr vs Rs.502 Cr
- Debt repayment of Rs.830 Cr vs Rs.514 Cr
https://www.bseindia.com/xml-data/corpfiling/AttachLive/ed28beb8-16af-490e-8526-7e03e462b5d3.pdf
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Metals are in demand now & captive units like Jindal will benefit
Jindal Stainless (Hissar) has done very well recently. The PE is 4.87, but then most steel makers do not enjoy a high PE. What really draws you to it is its ROE 49.3. The ROCE also is not mean at 45.7.
I don’t belong to the clan of investors who sell immediately once the profit reaches 25%. However, in the case of this company my doubt is: is stainless steel also cyclical.
Need knowledgeable input.
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Pls share the source
Not sure whether it is good for the Jindal Stainless (Hisar) investors.
Jindal Stainless-JSHL merger likely to be completed by fiscal-end: Abhyuday Jinda
‘Merger will result in seamless integration of high volumes and niche offerings across various segments’
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Global financial services firm JPMorgan said on Tuesday that it expects global steel prices to rise further in the coming days. JPMorgan highlighted that China export prices have already hit $620 per tonne and demand is expected to improve further post the Lunar New Year.
What impact it is likely to have on Jindal Stainless (Hisar)?
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https://www.screener.in/results/latest/#:~:text=Jindal%20Stain.%20Hi,₹ 21.77
Jindal Stainless (Hisar), the profits have fallen year to year, but have risen quarter to quarter.
any news on when the converted shares (of JSL) will be credited to demat?
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Here are my quick notes on JSL. Looks a solid proxy to multiple sectors with tailwinds.
Jindal Stainless - Quick Notes.pdf (185.0 KB)
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What is the reason of huge pledge share of promoters? Is it red flag, i checked other steel companies also, they have not this much pleadged share. Please help.
Notes of Management Interview (20.10.2023):
Volume Growth:
Jindal Stainless is optimistic about its volume growth for FY24. Despite challenges in the export market, particularly in Europe and the US, the company managed to maintain decent volumes in the last two quarters. This was achieved by pushing volumes in the domestic market and introducing high-strength grades.
Mr. Mantri mentioned that they expect a volume growth of more than 20% for FY24. This is based on the current run rate and their ability to balance between the domestic and export markets.
Exports:
In the previous quarter, exports were down to 13% due to reduced demand in Europe and the US. However, they expect exports to pick up in the fourth quarter. The overall target is to achieve a 15% mix through exports for the year.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per ton:
The guidance for EBITDA per ton remains between 19,000 to 21,000. The company is currently at the midpoint of this range, with an EBITDA close to 20,000.
Indonesian Plant:
Jindal Stainless is considering selling its Indonesian plant. The decision comes as the business model in Indonesia became unviable due to significant anti-dumping duties imposed by Europe and the US. The company is exploring various options, including divestment or selling part of the assets. The exact value and timeline for this are yet to be determined.
Debt Reduction:
The company has been successful in reducing its debt. The initial guidance for the closing debt of FY24 was between 5,400 to 5,500 CR. However, due to working capital optimization, which freed up 500 to 600 CR cash, the expected closing debt for FY24 is now around 4,700 CR.
Jindal Stainless (Hisar) Ltd (JUSL):
JUSL operates as a tolling business, and its EBITDA is expected to remain stable at around 800 CR.
Promoter Pledge:
The issue of promoter pledge was addressed. Currently, the pledge stands at 77.5%. Mr. Mantri mentioned that all banks, except one, have approved the removal of the pledge. He is hopeful that by the end of the calendar year, the pledge issue will be resolved.
Dividend:
Jindal Stainless has been consistent in paying dividends for the last three quarters, which has been positively received by investors.
Disc: Invested
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Good to see the management walking the talk. Here are some recent updates shared by the management in an interview:
Complete plegde (around 78%) has been removed by the company in one go!
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Rating upgrade from CRISIL
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Cost of borrowings should go down
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Debt coming down as well and net debt of around 0.5x can be maintained
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Most of the capex going foward will be funded from internal accruals, not looking to raise too much of debt
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Volume Growth Guidance - 20% (2.15mt in FY24 and 2.5mt in FY25)
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EBITDA/ton to sustain around 19000-21000
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Imports from China remain an issue - expecting government to take note of the same and make it a level playig field and enahnce the ‘Make in India’ effort - should also reduce the carbon emmissions in the ecosystem
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Looking to become segment independent (not just infra) - focusing on auto, defence, consumer durable, railways, etc. - none of them will contribute more than 15-20% each - derisking the business model
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People realising the benefits of using stainless steel across sectors
Disc: Invested
9 Likes
Hello Folks,
I being from a steel background(mainly stainless steel) as of now the demand of stainless steel is a little lower than what it was 6-8 months back and the demand for scrap is also subdued.
Recently there has been a major drop in Pure Nickel Prices. So I though i should write about this in the thread not a lot has been mentioned about this on how Raw Material could really impact Jindal Stainless.
Now the stainless steel scrap is being sold lower than the its value as per Nickel’s Current prices.(this talks a lot about the demand)
I have attached a picture of Nickel Prices below as it is trading at 52 week low. For all those invested and interested in Jindal Stainless please note that this could result in margin erosion
- There is a lot of material coming from China at cheaper prices.
- The base raw material has dropped drastically.
Not Invested.
Views are welcome.
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If it corrects by 10-15%, it will be a nice opportunity for new entry, acc. to me
q3 update with earning call notes and technicals
q3 update jindal stainless.pdf (3.8 MB)
disc: invested and biased , no recommendations
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