PINC has come out with research report on Jindal Stainless and has maintained buy recommendation on the stock with a 12 months target price of Rs 195, in a report dated November 19, 2007.
"Jindal Stainless Ltd's (JSL) results in Q2FY08 were below our expectations with the company posting net sales of Rs11.3 billion (-2% YoY & -6% QoQ). This was mainly because of slide in exports, both in volume & value terms. Net profits dropped 57% YoY on back of huge volatility witnessed in Nickel prices. With fall in Nickel prices, stainless steel prices also fell but the operating cost increased as Nickel in pipeline & inventory was procured at higher prices.We believe Q2FY08 results were a temporary hiccup and JSL has a scope for margin improvement, considering the operating efficiencies from captive ferro alloys, power & increasing volumes at Hisar. It is poised to capitalise on the buoyant SS cycle, which is benign at present. Hence, we maintain our 'BUY' recommendation with a 12-month price target of Rs195", according to PINC research report.
Disclaimer: The views and investment tips expressed by investment experts onmoneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.
