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Jindal Saw surges 5% after nearly 1% equity changes hands via block deal

Around 2.35 million equity shares, representing 0.74 per cent of total equity of Jindal Saw, changed hands on the NSE, exchange data shows

Steel pipes

SI Reporter Mumbai

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Shares of Jindal Saw hit a record high of Rs 553.80 as they rallied 5 per cent on the National Stock Exchange (NSE) in Tuesday's intraday trade after nearly 1 per cent equity, worth Rs 122 crore of the company, changed hands in pre-opening deals. With this, the stock of the iron & steel company surpassed its previous high of Rs 550 touched on February 8, 2024.

Around 2.35 million equity shares, representing 0.74 per cent of total equity of Jindal Saw worth Rs 122.43 crore, changed hands on the NSE, exchange data shows. The names of the buyers and sellers, however, could not be ascertained immediately.

At 09:32 am, the stock was trading 3 per cent higher at Rs 541.65 as compared to 0.17 per cent decline in the Nifty 50 index. Thus far in the financial year 2023-24 (FY24), the stock price of Jindal Saw has zoomed 280 per cent.

Jindal Saw's business profile includes the manufacturing of iron & steel pipes and pellets, including pipes and tubes.

The product range includes helically submerged arc-welded pipes (HSAW), longitudinally submerged arcwelded pipes (LSAW), ductile iron pipes, HDPE Pipes, seamless pipes, and tubes made of carbon, alloy and stainless steel. The company also has all varieties of anti-corrosion and protective coating facilities along with the necessary ancillaries like fittings, bends, flanges etc. to make it a total pipe solution provider in the world.

Substantial contribution to revenue is coming from drinking water supply and sanitation (WSS) which is growing rapidly in India and globally. The company's exposure to the Oil & Gas sector accounts for only one fourth of the total revenue.

For the nine-month period and Q3 in FY24, Jindal Saw reported growth in volumes due to strong execution, resulting in improved turnover and margins. Higher exports, improved volumes, and range bound raw material prices have contributed towards margin improvement. The company's order book for Iron & Steel pipes and pellets stood at ~$ 1.49 billion (Previous quarter ~$1.44 billion).

Going ahead, Jindal Saw believes the ongoing urbanisation trend, especially in Asia-Pacific and Middle Eastern countries, is positively influencing the market.

"Governments in the region (including India) are investing heavily in infrastructure projects, which include transportation networks, urban development including water and wastewater network, and energy projects, fueling the demand for iron and steel tubes and pipes," the company said.

India is poised to expand area under oil & gas exploration from 10 per cent of the Indian sedimentary basin to 16 per cent once Open Acreage Licensing Program (OALP) rounds 9 & 10 are awarded. PSU and private investment in the sector are expected to sustain consequently. The Government's water projects have accelerated the supply of drinking water to rural households. Whereas several milestones have been crossed, the demand from this segment continues to create opportunities for pipe-makers, Jindal Saw said.

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First Published: Feb 20 2024 | 10:00 AM IST

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