Jindal Stainless is a large cap company that recorded a market cap of ₹21,450 Cr today. Jindal Stainless is the market leader for stainless steel in India. The shares of Jindal Stainless closed today on a red note on Dalal Street after the Board of Directors of the company announced special interim dividend for FY 22-23.
“Pursuant to the applicable provisions of SEBI Listing Regulations, we wish to inform you that the Board of Directors ("the Board") of Jindal Stainless Limited ("the Company") at its meeting held today i.e. 18th April, 2023 has considered and approved inter alia the: 1. Payment of Special Interim dividend@ 50% i.e. Re. 1 per equity share (face value of Rs. 2 per equity share) for the financial year 2022-23 upon successful completion of the merger process and consequent listing of new shares of the merged entity. Accordingly, the Board has fixed Wednesday, April 26, 2023 as record date for determining entitlement of members for the purpose of payment of Special Interim Dividend. The payment of Special Interim Dividend / dispatch of dividend warrants will be completed by May 17, 2023. 2. Re-appointment of Mr. Abhyuday Jindal (DIN: 07290474), as Managing Director of the Company for a term of 5 (five) consecutive years w.e.f. 1st May, 2023, upon the recommendation of the Nomination and Remuneration Committee, subject to approval of Members of the Company. Mr. Abhyuday Jindal is not debarred from holding the office of Director by virtue of any order of Securities and Exchange Board of India or any other such authority,” said the Board of Jindal Stainless in a stock exchange filing today.
Recently, the leading rating agency firm CRISIL raised Jindal Stainless’ Outlook to AA-/Positive. Regarding the long-term bank facilities and debt programme, CRISIL Ratings upgraded the company's outlook from "Stable" to "Positive" and retained its "CRISIL AA-" rating. The short-term bank facilities' rating of "CRISIL A1+" has been maintained in the meanwhile.
Commenting on the development, Managing Director, Jindal Stainless, Mr Abhyuday Jindal said, “The upgraded outlook by CRISIL Ratings is a significant recognition of Jindal Stainless’ strong business fundamentals and its commitment to mitigating environmental and social risks. With our focus on creating a sustainable ecosystem, enhancing our melting capacities to fulfill the growing stainless steel demand and improving our environmental, social, and governance profile, we will continue to deliver the best-in-class stainless steel solutions to India and the world.”
The shares of Jindal Stainless closed on the NSE today at ₹261.50 apiece level, down by 0.11% from the previous close of ₹261.80. The stock touched a 52-week-high of ₹329.00 on (08-Mar-2023) and a 52-week-low of ₹95.05 on (20-Jun-2022). During Q4FY23, the company recorded a promoter shareholding of 57.95%, FIIs stake of 21.10%, DIIs stake of 6.84% and a public stake of 14.12%.
Commenting on the technical outlook of the stock Rahul Ghose, Founder & CEO – Hedged, an algorithm-powered advisory platform said “The Jindal stainless steel stock is currently forming a large bearish engulfing candle on the monthly chart signifying that the medium term outlook for the stock is down if the current April month candle closes this way. The momentum indicators are also coming down from the overbought territory with 250 being a crucial level for this counter. A decisive break below this will not be good for the stock even in the short term. The stock also has more than 75% of its promoter shares pledged and had posted bad results even in the last quarter. This is never a good sign for any stock especially since the markets have been range bound to down in this period. One should not look to enter this stock for the medium or long term unless and until it closes above the 300 levels and sustains there.”
