1,950 Per Cent Multibagger Returns: Jindal Group Stainless Steel Company Announces Major Updates; Complete Details Inside
The stock gave multibagger returns of 250 per cent in just 3 years and a whopping 1.950 per cent in 5 years.
Jindal Stainless, India's foremost stainless-steel producer, achieved an annual turnover of INR 40,182 crore (USD 4.75 billion) in FY25 and is actively expanding its production capabilities to reach an annual melt capacity of 4.2 million tonnes by FY27. With a widespread network encompassing 16 manufacturing and processing facilities across India and internationally in Spain and Indonesia, alongside a global presence in 12 countries and a robust domestic infrastructure of ten sales offices and six service centers as of March 2025, the company offers a diverse product portfolio ranging from slabs and coils to specialized items like blade steel and coin blanks. Driven by its integrated operations for enhanced cost efficiency and a founding vision of innovation and social responsibility since 1970, Jindal Stainless is also deeply committed to a sustainable future, utilising electric arc furnace technology in its manufacturing processes to significantly lower greenhouse gas emissions and promote the recyclability of scrap.
The Board of Directors of Jindal Stainless Limited (JSL) announced robust financial results for the fiscal year and fourth quarter ending March 31, 2025, demonstrating strong operational performance driven by domestic demand. For FY25, JSL recorded a 9 per cent increase in sales volume, reaching 2,373,070 tonnes, while standalone net revenue grew by 5 per cent year-on-year to Rs 40,182 crore. The company reported an EBITDA of Rs 3,905 crore and a Profit After Tax (PAT) of Rs 2,711 crore, marking a 7 per cent year-on-year growth in PAT. Notably, Q4FY25 witnessed record-high sales volumes of 642,641 tonnes, a 13 per cent increase compared to the same period last year, with standalone net revenue also rising by 13 per cent to Rs 10,786 crore and EBITDA increasing by 8 per cent. The PAT for Q4FY25 showed a significant jump of 94 per cent year-on-year.
The strong performance in FY25 was underpinned by a growing domestic demand for stainless steel, fuelled by government initiatives promoting its use along India's coastline and increasing adoption in the logistics sector, particularly in electric vehicles, trailers, and containers. Several key sectors, including automotive, railway coach, metro, white goods, and pipes and tubes, experienced double-digit growth, while the speciality grade segment also showed consistent quarter-on-quarter growth. Furthermore, emerging sectors like process, hydrogen, and nuclear industries presented substantial growth potential for the company. Recognising the positive financial outcome, the Board recommended a final dividend of Rs 2 per share for FY25, bringing the total dividend to Rs 3 per share, subject to shareholder approval. The company maintained a stable consolidated net debt-to-equity ratio of approximately 0.2, despite a year marked by significant capital expenditure, with consolidated net debt standing at Rs 3,899 crore.
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Despite a decline in worldwide trade due to recent geopolitical situations, Jindal Stainless effectively navigated the global landscape by capitalising on market opportunities and its value-added offerings, leading to a renewed rise in export demand in Q4 FY25. The company ramped up its capacity utilisation to meet this demand, with expectations of continued improvement in the short to medium term, especially in quality-conscious markets such as the US and EU. However, the Indian stainless-steel industry continued to face challenges from imports, particularly from China and Vietnam, which accounted for over 70 per cent of total imports in FY25. Notably, imports from Vietnam saw a dramatic surge of 176 per cent in FY25 and 64 per cent in Q4FY25, indicating ongoing circumvention of trade regulations.
Beyond its core business, Jindal Stainless made significant strategic advancements, including the acquisition of a 9.62 per cent stake in M1xchange, a leading TReDS platform, to enhance its digitalisation efforts and streamline payment systems across its value chain. The company also signed a non-binding MoU with the Maharashtra government for a potential Rs 40,000 crore investment in a new stainless steel manufacturing facility over the next decade, expected to generate over 15,000 jobs. Furthermore, its strategic arm, Jindal Defence and Aerospace, achieved key milestones by supplying low-alloy steel sheets to Brahmos Aerospace and securing its first commercial contract with KS Engineering. Demonstrating its commitment to sustainability, Jindal Stainless reduced its corporate carbon footprint by approximately 15 per cent in FY25, published its first TNFD report, and its subsidiary JSL Super Steel entered into a PPA for clean energy. Additionally, Jindal Stainless commissioned Odisha’s largest captive solar plant at its Jajpur unit, significantly contributing to green energy generation and carbon emission reduction.
The stock gave multibagger returns of 250 per cent in just 3 years and a whopping 1.950 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.