Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Jindal Stainless (Hisar) - Initiating Coverage - BUY - TP Rs.318 - Kotak

Posted On: 2017-12-21 01:37:37

Jindal Stainless Hisar (JSHL), is a Hisar unit of Jindal Stainless (JSL) which got separated due to Asset Monetization Plan (AMP), in 2015. JSHL has an installed capacity of 0.8MT and the group has captured about 50% market share along with 0.8MT of JSL capacity. JSHL has always been the profitable business even during the turbulent times, due to its focus on value added products. The company is the world's largest SS producer strips for razor blades and India's largest producer of coin blanks, catering to Indian and International mint needs. Going ahead, with the increased focus of the government on improving railway's infrastructure, metro railways, airport, coupled with the growing usage of cookware is likely to support the growth of stainless steel industry in the domestic market. As per the industry estimates, stainless steel (SS) industry is likely to grow at 8% CAGR during FY17-23E. Given the implementation of GST and the imposition of 18.95% CVD on Chinese imports, we expect JSHL to garner a higher market share in the coming years. We expect revenue to grow at a CAGR of 15% during the FY17-FY20E period. In addition, increasing share of Cold Rolled (CR) through debottlenecking in the overall product mix will help the EBITDA to grow at 14% CAGR and margin to improve gradually from 11.9% in FY17 to 12.5% by end of FY20E. Besides these, an improvement in subsidiaries performance is also likely to be a potential growth driver. We expect PAT to grow at 31% CAGR with a return ratio in the range of over 20%. We are initiating coverage on JSHL with BUY rating, valuing it on a SOTP basis, giving core business 7x FY19E EV/EBITDA multiples and investment in JSL (36.6% stake) at 25% holding company discount, thereby arriving at a target price of Rs318. The stock is currently trading at 6x/5.3x/4.8x FY18E/ FY19E/FY20E EV/EBITDA.

Shares of Jindal Stainless (Hisar) Ltd was last trading in BSE at Rs.209 as compared to the previous close of Rs. 209.5. The total number of shares traded during the day was 89017 in over 931 trades.

The stock hit an intraday high of Rs. 212.5 and intraday low of 207.75. The net turnover during the day was Rs. 18669829.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Initiating Coverage: HSIL Ltd - Angel Broking
Result Update: The Phoenix Mills Ltd - BUY - TP Rs.672 - Kotak
Result Update: Time Technoplast Ltd - BUY - TP Rs.214 - Kotak
Result Update: Shipping Corporation of India - BUY - TP Rs.110 - Kotak
Result Update: PNC Infratech Ltd - BUY - TP Rs.208 - Kotak
Result Update: KNR Constructions Ltd - ACCUMULATE - TP Rs.348 - Kotak
Result Update: NBCC (India) Ltd - ACCUMULATE - TP Rs.229 - Kotak
Result Update: Jindal Stainless Hisar Ltd - BUY - TP Rs.318 - Kotak
Result Update: NMDC Ltd - SELL - TP Rs.130 - Kotak
Result Update: Talbros Automotive Ltd - BUY - TP Rs.389 - Kotak
Result Update: Sterling Tools Ltd - ACCUMULATE - TP Rs.428 - Kotak
Result Update: FIEM Industries Ltd - BUY - TP Rs.1203 - Kotak
Management Meet Update: Escorts Ltd - BUY - TP Rs.1051 - Kotak
Result Update: GE Shipping Company - BUY - TP Rs.500 - Kotak
Result Update: Marico Ltd - ACCUMULATE - TP Rs.327 - Kotak
Result Update: Mahanagar Gas Ltd - ACCUMULATE - TP Rs.1084 - Kotak
Result Update: Wonderla Holidays Ltd - BUY - TP Rs.457 - Kotak
Result Update: Asian Granito India Ltd - BUY - TP Rs.705 - Kotak
Result Update: NALCO - BUY - TP Rs.100 - Kotak
Result Update: VA Tech Wabag Ltd - BUY - TP Rs.672 - Kotak
Result Update: Greaves Cotton Ltd - REDUCE - TP Rs.136 - Kotak
PNB's 11300 cr fraud will impact the asset quality: Angel Broking
Lambodhara Textiles Ltd Q3 net profit climbs to Rs. 3.46 crores
Result Update: GHCL Ltd - BUY - TP Rs.365 - Kotak
CHHOTA (to) Mota Ideas - Result Update: Eveready Industries India Ltd - BUY - TP Rs.530 - Kotak
Result Update: Tata Motors - BUY - TP Rs.477 - Kotak
Result Update: Bajaj Auto Ltd - BUY - TP Rs.3670 - Kotak
Views on Indoco Remedies Ltd 3QFY2018: Angel Broking
Government finally lays out a detailed roadmap for PSU banks: Angel Broking
Idea Cellular feels the pressure of Jio pricing in Q3: Angel Broking
Company Update: GHCL - BUY - TP Rs.365 - Kotak
Result Update: Zee Entertainment Exterprises Ltd - REDUCE - TP Rs.610 - Kotak
Result Update: Hindustan Unilever Ltd - ACCUMULATE - TP Rs.1520 - Kotak
Result Update: TV18 Broadcast Ltd - ACCUMULATE - TP Rs.67 - Kotak
Views on Wipro Limited 3QFY2018: Angel Broking
Yes Bank reports better than expected quarterly results: Angel Broking
Result Update: DB Corp Ltd - BUY - TP Rs.550 - Kotak
Result Update: Adani Port and Special Economic Zone (APZ) - BUY - TP Rs.485 - Kotak
Result Update: Ultratech Cements Ltd - BUY - TP Rs.4978 - Kotak
Views on HCL Technologies Ltd 3QFY2018: Angel Broking
MIRC Electronics - Initiating Coverage - Kotak
Result Update: Tata Sponge Iron Ltd - REDUCE - TP Rs.1172 - Kotak
Result Update: Hindustan Zinc Ltd - REDUCE - TP Rs.315 - Kotak
Result Update: Zensar Technologies - ACCUMULATE - TP Rs.971 - Kotak
Result Update: Cyient Ltd - REDUCE - TP Rs.689 - Kotak
Result Update: NIIT Technologies Ltd - ACCUMULATE - TP Rs.798 - Kotak
Result Update: Chennai Petroleum Corporation Ltd - ACCUMULATE - TP Rs.495 - Kotak
Result Update: ITC Ltd - BUY - TP Rs.318 - Kotak
Result Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.600 - Kotak
Axis Bank flatters the street in the third quarter: Angel Broking


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018