Mehabe score: 7 G Factor: 8 Piotski Score: 8 The stock has a rating STRONG BUY. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 8 and Piotski score of 8.
Description
Jindal Stainless (Hisar) is engaged in a leading manufacturer /producer of stainless steel flat products in austenitic, ferritic, martensitic and duplex grades.(Source : 201903 Annual Report Page No: 93)Site:JSLHISARMain Symbol:JSLHISAR
Stock trades at 286.0, above its 50dma 210.74. It also trades above its 200dma 156.04. The stock remains bullish on techicals
The 52 week high is at 294.85 and the 52week low is at 66.80
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has a good return on equity (ROE) track record: 3 Years ROE 22.08%
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 5.38% over past five years.
-Contingent liabilities of Rs.5208.43 Cr.
-Promoters have pledged 87.07% of their holding.
Competition
– The industry trades at a mean P/E of 13.2x. APL Apollo Tubes trades at the industry’s max P/E of 62.04x. JSLHISAR trades at a P/E of 10.2x
– Industry’s mean G-Factor is 6.0 while the mean Piotski score is 8.0. JSLHISAR has a G-Factor of 8 and Piotski scoreof 8.
– Average 1 month return for industry is 20.3%. The max 1- month return was given by Jindal Stain.: a return of 44.82 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2776.0 cr compared to Rs 852.0 cr for period ended Jun 2020, a rise of 225.8%
Operating Profits reported at Rs 412.0 cr for period ended Jun 2021 vis-vis 3.0 for period ended Jun 2020 .
Operating Margins expanded 1448.9 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 15.18 compared to Rs 14.83 for previous quarter ended Mar 2021 and Rs -3.93 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 11324.0 cr for period ended TTM vis-vis sales of Rs 9400.0 cr for the period ended Mar 2021, a healthy growth of 17.0%. The 3 year sales cagr stood at 3.2%.
Operating margins expanded to 13.0% for period ended TTM vis-vis 12.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 1145.0 cr for period ended TTM vis-vis sales of Rs 694.0 cr for the period ended Mar 2021, rising 39.4%.
Company recorded a healthy Net Profit CAGR of 44.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1305.0 cr for period ended Mar 2021 vis-vis Rs 710.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 309% on a 1 Year basis vis-vis a return of 31% over the last 3 Years. – The compounded sales growth on a TTM bassis is 0% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is 75% vis-vis a compounded profit growth of 5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 20.97% vis-vis 20.69% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 16.87% vis-vis 17.63% for Mar 2021
Conclusion
– has reduced debt.
– has a good return on equity (ROE) track record: 3 Years ROE 22.08% – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 5.38% over past five years.
-Contingent liabilities of Rs.5208.43 Cr.
-Promoters have pledged 87.07% of their holding.
Fundamentally, the stock remains a Strong ‘BUY’ in our long term portoflio.
Technically too, the stock is a Strong ‘BUY’ in our long term portoflio.The stock remains above its 50 DMA 210.74 and is trading at 286.0
Thus, overall, we retain a STRONG BUY on the stock. Any dips can be used to build positions.
