Jindal Saw climbs 8% after acquiring stake in renewable power generation co

Shares of Jindal Saw rallied up to 7.73 per cent at 333.05 per share on the BSE in Wednesday’s intraday deals. Jindal Saw share price surged after the company said that it has entered into a share purchase agreement with ReNew Green Energy Solutions Private Limited (RGES) to acquire up to 31.20 per cent equity share capital in ReNew Green MHH One Private Limited (RGMHH).

 

The acquired entity engages in power generation from renewable sources. However, the company is yet to start its operation. The acquisition will allow Jindal Saw to procure electricity at a concessional rate, it said in an exchange filing on Tuesday.

 

Jindal Saw further said it aims to complete the acquisition by May 31, 2025, or any other date as may be mutually decided between the parties.

 

Financially, Jindal SAW Ltd, a homegrown entity, reported a 32.4 per cent year-on-year (YoY) increase in net profit to Rs 499 crore for the second quarter ended September 30, 2024. This marks a significant rise from the Rs 377 crore net profit recorded in the same quarter of the previous fiscal, as per the company’s regulatory filing.  

 

The company’s revenue from operations grew by 2 per cent, reaching Rs 5,571.9 crore, compared to Rs 5,466.2 crore in the corresponding period of the preceding fiscal.  

 

At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) showed strong growth of 13.7 per cent, rising to Rs 914.1 crore in Q2 FY25 from Rs 804 crore in Q2 FY24. The Ebitda margin improved to 16.4 per cent in the reporting quarter, up from 14.7 per cent in the corresponding quarter of the previous year.

 

The company has a total market capitalization of Rs 20,141.31 crore. Its shares are trading at a price to earnings multiple of 5.19 times and at an earning per share of Rs 59.56. 

 

At 9:50 AM; the shares of the company were up 1.62 per cent at Rs 314.15  a piece. By comparison, the BSE Sensex was trading 0.20 per cent higher at 80,844.66 level. 

 

Jindal SAW Limited (JSL), formerly known as SAW Pipes Ltd, is a part of the Jindal Group and is a leading global manufacturer and supplier of iron and steel pipe products as well as pellets. The company operates state-of-the-art manufacturing facilities located in Kosi Kalan (Uttar Pradesh), Nashik (Maharashtra), and Mundra (Gujarat), with additional facilities in the USA, Europe, and the UAE (MENA region).