Jindal Saw gains on good Q4 numbers

Jindal Saw rose 0.66% to Rs 910 at 10:14 IST on BSE, on reporting 854.4% surge in net profit to Rs 573.88 crore in Q4 December 2007 over Q4 December 2006.

The results were announced after market hours on Tuesday, 26 February 2008. The stock rose 1.69% to Rs 904 on Wednesday, 27 February 2008.

Meanwhile, BSE Sensex was down 14.25 points or 0.08% to 17,811.74, as a sharp drop in US durable goods orders and US home sales fueled recession concerns in the world's biggest economy.

On BSE, 2,792 shares were traded in the counter. The scrip had an average daily volume of 67,394 shares in the past one quarter.

The stock hit a high of Rs 914.75 and a low of Rs 907 so far during the day. The stock had a 52-week high of Rs 1224.90 on 4 January 2008 and a 52-week low of Rs 447 on 5 March 2007.

The mid-cap scrip had outperformed the market over the past one month till 27 February 2008, declining 0.68% compared to the Sensex’s decline of 1.47%. It had also outperformed the market in the past one quarter, gaining 5.32% compared to Sensex’s decline of 6.20%.

The company’s current equity is Rs 52.12 crore. Face value per share is Rs 10. The current price of Rs 910 discounts its Q4 December 2007 annualized EPS of Rs 448.87, by a PE multiple of 2.03.

Jindal Saw’s net sales rose 35.1% to Rs 1611.69 crore in Q4 December 2007 over Q4 December 2006.

On 26 February 2008, the company proposed three-fold business initiatives in infrastructure, transportation and fabrication and firmed up plans to set up three distinct lines of businesses. With this objective in view, a company Jindal ITF has been incorporated which as a subsidiary of Jindal Saw. On 29 January 2008, Jindal Saw received letter of award from Cairn Energy India for supply of line pipes, tracer tube, insulation and bends for Barmer Salaya Pipe Line project.

On 3 January 2008, Jindal Saw received orders aggregating to $250 million for supply of spiral pipes/longitudinal submerged arc welded pipes and seamless pipes.

Jindal Saw manufactures and markets submerged arc welded (SAW) pipes. The company's products include large diameter submerged arc welded pipes and spiral pipes and bends which are used in the energy sector for transportation of oil and gas, carbon, alloy. Its plants are located at Maharashtra, Uttar Pradesh and Gujarat. The group operates in India and United States.