Jindal Stainless Q4 Results Review - Weak Quarter Affected By Low NSR, High Cost: Prabhudas Lilladher

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Jindal Stainless Ltd. reported weak standalone operating performance in Q4 led by sharp 10% YoY decline in average net sales realisation, 5% decline in export volumes and higher costs. Although volume growth was stronger at 12% YoY, product mix deterioration has affected margins due to higher share of domestic business. Management indicated negative impact of ~Rs 2.5 billion in Q4 on nickel inventory loss, higher freight cost and weak exports. We expect near term weakness to continue with slight improvement in Q1 led by higher stainless steel prices. With NPI and newly acquired Chromeni assets getting commissioned in FY25, Jindal Stainless is expected to continue delivering strong 20% volume compound annual growth rate over FY24-26E. We upgrade FY25E/26E Ebitda by 5%/10% incorporating recently announced capex of Rs 54 billion. We expect revenue/Ebitda/profit after tax compound annual growth rate of 29%/34%/41% over FY24-26E respectively. At current market price, the stock is trading at 9.5 times/6.7 times enterprise value of FY25E/FY26E Ebitda. Maintain ‘Hold’ rating with revised target price of Rs 712 (earlier Rs 705) valuing at seven times enterprise value of March-26E Ebitda..Click on the attachment to read the full report:.Jindal Stainless Shares Hit Two-Month Low After Q4 Profit Miss.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Jindal Stainless Q4 Results Review - Weak Quarter Affected By Low NSR, High Cost: Prabhudas Lilladher

Volumes grew 12.4% YoY to 570 kt however export volumes declined 5% YoY to 63 kt which has impacted NSR and margins.

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Jindal Stainless Q4 Results Review - Weak Quarter Affected By Low NSR, High Cost: Prabhudas Lilladher

Volumes grew 12.4% YoY to 570 kt however export volumes declined 5% YoY to 63 kt which has impacted NSR and margins.

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