Jindal Stainless - Transient Decline Provides Fresh Opportunity: ICICI Securities

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Despite tumbling 13% in past one month, the Jindal Stainless Ltd.'s stock has delivered 112% return in past six months. We believe the stock deserves a fresh look as the fundamentals post-merger remain robust and we see a semblance of regulatory support emerging. Key points: Jindal Stainless is on track to deliver 2.1 million tonne/2.7 mnte in FY24/FY25 as capacity expansion at Jajpur is complete;Ebitda/tonne is likely to sustain at Rs 20,000 over next two years;recent backward integration initiatives are likely to reduce external vulnerabilities;Directorate General of Trade Remedies has recommended re-imposition of countervailing duty of 18.95% post the sunset review on import of 200 series from China;new applications such as in railways and roads increase the opportunity size. In our view, Jindal Stainless is at the cusp of profitability/volume improvement largely on the back of commissioning of new capacity (1.0 million tonnes per annum) and favorable regulatory shift. We value the merged entity at six times Ebitda. Furthermore, the acquisition of Jindal United Steel Ltd. is likely to improve margins by ~Rs 4,000/tonnee in our view. .Click on the attachment to read the full report:.Ambuja Cement - Walking The Talk: ICICI Securities.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Jindal Stainless - Transient Decline Provides Fresh Opportunity: ICICI Securities

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