Price when posted : NSE: Rs. 117.40
Water business of Jindal saw : basically they have 2 types of water pipes, first one is Steel pipes -HSAW, they are doing close to 1.06 lac MT/Qtr and Iron pipes-Ductle Iron pipes- they are doing 1.47 lacs MT/ qtr. They have order book of close to next 2-year production in these segment. Plus their Abudhabhi DI plant start making profits. Only problem here is increase in input costs, for steel (HSAW) pipes HRcoil is input raw material , where the prices of Raw material shot up, similarly Iron (DI) pipe raw material is Iron ore, that is also shot up by 100%. Due to this water pipe business bottom line is under pressure, this will remains under pressure for another 2 more quarters. This water pipe business continues to contribute to top line but bottom line shall be under pressure due to higher input raw materials costs. Since this company has 4 verticals of business like Oil pipes ( LSAW), Seamless pipes and Pellet business, bottom line is protected by these verticals especially pellet business which is selling at life time high prices. Due to fantastic 4 verticals, this company remains as Evergreen profit making. There are some legacy small hurdles, which they overcome completely in next few quarters. Then No one can stop the bull run. Have faith in long term story of this company.
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Water business of Jindal saw : basically they have 2 types of water pipes, first one is Steel pipes -HSAW, they are doing close to 1.06 lac MT/Qtr and Iron pipes-Ductle Iron pipes- they are doing 1.47 lacs MT/ qtr. They have order book of c...
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