Jindal Stainless shines

Jindal Stainless shines

Jindal Stainless spurted 5.55% to Rs 157.90 at 12:57 IST on BSE on anticipation of higher demand for stainless steel after the railway budget announced introduction of stainless steel coaches in express trains.

Meanwhile, the BSE Sensex was up 134.03 points, or 0.76%, to 17780.64, following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs.

On BSE, 1.54 lakh shares of the scrip were traded. The stock had an average daily volume of 2.55 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 157.70 and a low of Rs 150.50 so far during the day. The stock had hit a 52-week high of Rs 243.80 on 5 December 2007 and a 52-week low of Rs 115.50 on 22 January 2008.

The scrip had outperformed the market in the one month to 25 February 2008, falling 0.13% as against the Sensex's 3.87% decline. It had, however, underperformed the market in the past three months, skidding 32.72% against the Sensex's 7.72% slide.

India's largest stainless steel maker by sales has an equity capital of Rs 30.12 crore. Face value per share is Rs 2.

At the current price of Rs 157.90, the scrip trades at a PE multiple of 11.50, based on Q3 December 2007 annualised EPS of Rs 13.73.

The net profit of Jindal Stainless fell 55.2% to Rs 50.60 crore on 6.7% decline in sales to Rs 1348.57 crore in Q3 December 2007 over Q3 December 2006.

Jindal Stainless is the flagship of O P Jindal group. The company is engaged in manufacture of stainless steel and special steel products.