India's Jindal SAW posts 32.5% jump in Q2 profit
BENGALURU, Oct 18 (Reuters) -India's Jindal SAW JIND.NS reported a rise in second-quarter profit on Friday, as demand in its key Middle East and North Africa (MENA) markets remained steady while expenses came in nearly flat.
The company, which makes steel pipesfor the energy, transportation and water sectors, said its consolidated profit after tax grew 32.5% to 5 billion rupees ($59.5 million) in the three months ended Sept 30.
KEY CONTEXT
Jindal SAW's quarterly raw materials expenses dropped 14.4% from a year ago.
The falling prices of iron ore and coking coal, key raw materials for steel firms, were expected to partially offset the weak steel prices, analysts had said.
Steel prices in India plunged to a more than three-year low in August, as the world's second-biggest crude steel producer remained a net importer of the metal.
India's stainless steel maker Jindal Stainless JIST.NS posted a decline in second-quarter profit on lower steel prices on Thursday. Industry majors JSW Steel JSTL.NS and Jindal Steel JNSP.NS are yet to report their September-quarter results.
PEER COMPARISON
Valuation (next 12 months) | Estimates (next 12 months) | Analysts' sentiment | ||||||||
RIC | PE | EV/EBITDA | Revenue growth (%) | Profit growth (%) | Mean rating* | No. of analysts | Stock to price target** | Div yield (%) | ||
Jindal SAW | JIND.NS | 12.30 | 7.90 | 4.32 | 7.94 | Strong Buy | 2 | 0.99 | 0.55 | |
APL Apollo Tubes | APLA.NS | 39.81 | 25.75 | 22.01 | 34.96 | Buy | 13 | 0.96 | 0.35 | |
Ratnamani Metals and Tubes | RMT.NS | 32.36 | 23.52 | 14.99 | 20.83 | Buy | 3 | 0.93 | 0.38 | |
JSW Steel | JSTL.NS | 16.96 | 8.94 | 11.99 | 43.68 | Hold | 30 | 1.02 | 0.74 | |
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
-- All data from LSEG IBES
-- $1 = 84.0430 Indian rupees
Jindal Saw- July-Sept performance https://tmsnrt.rs/4f4P6D4
Reporting by Anuran Sadhu in Bengaluru; Editing by Sumana Nandy
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