Jindal Stainless Shares Hit Two-Month Low After Q4 Profit Miss

Shares of Jindal Stainless Ltd. fell to a two-month low on Thursday after its fourth-quarter net profit dropped in fiscal 2024. Net profit declined 30% year-on-year to Rs 501 crore for the January-March quarter. Revenue also fell 3.2% to Rs 9,454 crore during the period.

The company attributed pressure on margins to negative inventory valuations due to falling nickel prices and weak export markets in Europe and the US. Additionally, the Red Sea crisis increased ocean freight costs and constrained container availability, further compressing margins.

Shares fell as much as 8.47% to the lowest level since March 14 before recovering to trade 1.77% lower at 9:58 a.m., compared to a 0.20% advance in the NSE Nifty 50. The stock has risen 18.11% year-to-date and 129.88% in the past 12 months.

Total traded volume so far today stood at 1.65 times its 30-day average, with the relative strength index at 43.88.

Of the 10 analysts tracking the company, seven maintain a 'buy' rating, two recommend a 'hold,' and one suggests a 'sell', according to Bloomberg data. The average 12-month price target implies an upside of 13.9%.