Buy Jindal Drilling and Industries; target of Rs 960: Anand Rathi

Anand Rathi is bullish on Jindal Drilling and Industries has recommended buy rating on the stock with a target price of Rs 960 in its research report dated April 22, 2024.

Broker Research

April 23, 2024 / 12:06 IST

Buy

26 Aug, 2025 12:21

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Anand Rathi's research report on Jindal Drilling and Industries

Jindal Drilling & Industries Limited (JDIL) is part of the D P Jindal Group. JDIL has more than three decades of experience in offshore drilling and allied services including directional drilling and mud logging. JDIL owns rigs or takes rigs on lease from group companies or third parties and provides drilling services to upstream companies in Mumbai Offshore (Bombay High) region. The quality and efficient service rendered by the company has made it establish the longstanding relationship with India’s leading upstream oil exploration company (ONGC). The company has maintained a strong business relationship with ONGC from last 30 years. The company offers various services such as directional/horizontal drilling, measurement while drilling (MWD) services and mud logging services. The company has two Joint Venture companies based in Singapore namely, Discovery Drilling Pte Ltd (DDPL) and Virtue Drilling Pte Ltd (VDPL) in which it owns 49% stake each in both JVs. Over the years, company has been able to win contracts and its renewals in the past on consistent basis. The company’s operational experience and excellence on the back of its accomplished staff and crew has helps to achieve optimum efficiency standards across its rigs.

Outlook

We believe that JDIL’s Revenue/EBITDA/PAT is expected to grow at a CAGR of 13%/16%/27% respectively over FY23-25E. On valuation front, At CMP, the stock is trading at 13x of FY25E EPS. We initiate the coverage with a “BUY” rating on this stock by assigning 15x of FY25E earnings with a target price of Rs960.

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