Jindal Saw
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Jindal Saw is currently navigating a complex landscape marked by geopolitical instability in the MENA region and a slowdown in domestic water infrastructure spending. Management's cautious tone reflects muted Q1 FY27 performance due to suspended exports and API certification issues. However, the reinstatement of the API license and strategic pivot towards non-MENA markets are expected to enhance production capabilities and mitigate risks. Vista's financial outlook anticipates a recovery in revenue growth, supported by a robust order book and government-led infrastructure spending, particularly in the oil and gas sector. Despite expected margin pressures, the company's focus on optimizing existing facilities and managing working capital aligns with Vista's projections of improved profitability in H2 FY27. The industry context remains favorable, with expanding demand for pipes driven by infrastructure investments. Over the next 12-24 months, key opportunities include the establishment of a Middle East production corridor and diversification into European markets, while headwinds include geopolitical tensions and execution risks related to domestic projects
Why We Like This Stock
- Reinstatement of the API license enhances production capabilities and opens new market opportunities
- A robust order book of approximately US$1.3 billion provides visibility for revenue growth
- Strategic expansion into non-MENA markets and new facilities in the UAE and Saudi Arabia mitigates geopolitical risks
Things To Watch Out For
- Geopolitical instability in the MENA region continues to pose execution risks and impacts export operations
- Domestic water infrastructure spending is currently slowing, affecting revenue potential
- Margin pressures are expected to persist in the near term due to logistical constraints and cost management challenges
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 20,958 | 20,829 | 17,895 | 19,456 | 19,596 |
| Profit Before Tax (Cr.) | 2,221 | 2,373 | 1,076 | 501 | 824 |
| PBT Margin | 10.6% | 11.4% | 601.3% | 2.6% | 4.2% |
| Net Profit (Cr.) | 1,993 | 1,715 | 791 | 369 | 570 |
| Earnings Per Share | 32.5 | 31.2 | 13.1 | 5.4 | 8.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ► Accumulate | 299 | 16-Jul-2026 |
Company Overview
Show Company Profile
Jindal Saw Limited engages in the manufacture and supply of iron and steel pipes, and pellets in India and internationally. The company offers SAW pipes, such as double jointing, connector casings, hot pulled induction bends, monel sheating and anodes installation, post weld heat treatment, eddy current testing, and clad, as well as external and internal coatings, and line pipes; centrifugal casted pipes, including push up joint, double chamber restrained joint, and flanged pipes, as well as ductile iron fittings; and carbon/alloy steel seamless pipes and tubes comprising oil country tubular goods, flow line pipes, boiler pipes and tubes, and automotive tubes. It also provides stainless steel seamless and welded pipes and tubes, such as hydraulic and instrumentation tubing, condenser, heat exchanger, U-bends, coil tubing, and seamless pipes, as well as hollows and hollow bars; and welded and UHP pipes. The company operates iron ore mine and pellet plant. It also provides precision stainless steel strips and nickel alloys for use in the production of textile machinery, clocks, watches, and electrical equipment; anti corrosion and protective coating with fittings, bends, and flanges; double chamber pipes; polyurethane coated pipes; rust-free iron pipes; cold rolled strip products; transhipment and waterborne transportation services; advisory services; helical anchor manufacturing and property holding services; and tools and fittings products. The company engages in the provision of inland shipping; business process outsourcing services comprising call center, back office, and other support offices; and information technology (IT) services, including software development and support, IT maintenance, and other development services. Its products have applications in oil and gas exploration, transportation, power generation, supply of water for drinking, drainage, irrigation, and other industries. The company was incorporated in 1984 and is based in New Delhi, India.