Update to portfolio:
Added Jindal Stainless. They have raised their stake in IberJindal to 100%. Anticipate strong demand in the future as the European market recovers. Although their freight costs have risen amid the crisis, management mentioned considering a price hike if the issue persists. As a result, the management has adjusted their EBITDA/tonne guidance to 19-20k/tonne.
Short thesis on Jindal Stainless:
In the metal industry, businesses can be classified as either Converter or Commodity.
Converter → Companies purchase raw materials, and then add value through a conversion process.
Commodity → Involves the production and sale of basic, standardized products.
Upstream/Commodity companies are typically more volatile, leading to lower multiples compared to converter businesses.
Currently, Jindal Stainless is being valued as an Upstream business, but in my opinion, it operates more like a converter business. I believe there is a potential rerating opportunity.
Instrument | Allocation |
---|---|
NIFTYBEES | 33.55% |
ARMANFIN | 9.23% |
SENCO | 8.31% |
SOUTHBANK | 6.03% |
GOODLUCK | 5.76% |
NUVAMA | 4.82% |
JSL | 4.39% |
SKIPPER | 3.85% |
PRICOLLTD | 3.60% |
ICIL | 3.33% |
GMMPFAUDLR | 2.22% |
EQUITASBNK | 1.96% |
PENIND | 1.95% |
MARATHON | 1.92% |
Disclaimer: The content provided here is not investment advice. It reflects solely my personal opinions, and I could very well be wrong about any of them. Before making any investment decisions, it is advisable to consult with your financial advisors.
Subscribe To Our Free Newsletter |