Jindal Stainless (Hisar)

Quick notes on Jindal Stainless concall:

  • Rathi → by FY25 expect to have 70% utilization; this will have wire rods and rebars; expected run rate of 9-10k tonnes/month; 4-6k ebidta/tonne in FY25; 150crs of capex → some of it already incurred, in FY25 around 75crs of capex will happen
  • Rabirun → in H1FY25 should be able to start the plant; current capacity of 4-5k tonnes/month, eventually want to make 8-10k tonnes/month in the pipe and tube segment; in the beginning i.e. H1FY25 will only have 1-1.5k tonnes/month volume; Approx 75crs of capex; 100% JSL material will be used (generally 50% 200 series, 50% 300 series)
  • Iberjindal → in the future expect to have good demand when the European market rebounds; in FY22 did ebitda of 109crs, and PAT of 80crs; management is very bullish hence bought the stakes
  • Jindal Coke → valuation hasn’t been decided, ebidta last quarter was 56crs, debt 450crs; net debt ~300crs
  • Capex FY24 → earlier guidance was 3300crs which has been increased to 3600crs for two reasons
    – Rabirun → 100crs
    – NPI → tranche of $26million (225crs) being preponed to March
  • Pipe and tube business in the next five year will grow at 10-12% cagr
  • Series 400 → every quarter 2-3% contribution is increasing; currently 25% contribution
  • Freight Cost → not passing on the increase in cost right now, if the problem persist will pass
  • Guidance → 19-20k ebitda/tonnes; see good demand in the domestic market

Good News
Promoters unpledged Fully



Factor investing in railways - Jindal Stainless website


Promoters have been buying in Jan and Feb as well.


Jindal Stainless Limited: Jindal Lifestyle launches 1st premium cookware range under Arttd’inox


Jindal Stainless announces Rs.5,400 cr strategic investments as part of its plans to augment its melting and downstream capacity → melting capacity to go up by as much as 40 percent to 4.2 MTPA

Becomes the largest stainless steel player ex-China

  • Below expectation Q4 results for JSL due to nickel prices. Expected to recover in coming qtrs.
  • Expecting 20% volume growth for FY25
  • Confident on domestic demand (8-10% growth) but US,EU demand is still not recovered to full
  • EBITDA per tonne target for FY25 is around ₹18,000-20,000 (FY24 ₹18,558)

Interesting price movement post results today: Stock opened at 615 with a big gapdown but recovered fully within the day and closing above last day’s price. (11% recovery intraday)

Does this mean market is bullish and confident on JSL?


Jindal Stainless’ defence arm rifle gets army clearance | India Infoline