Jindal Saw: Order boost

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The stock hit an all-time high of Rs 514.80 on Friday after the company announced that it has bagged its single largest order worth Rs 1,560 crore ($355 million) from a large corporation in the US. In a market which declined, the stock closed flat at Rs 490.35 on Friday as against Rs 488.65 on week ago.

The US order involves supply of 42' submerged arc-welded pipes (L saw pipes). The order is for approximately 360 miles, including double jointing and coating. With this order, the company's order book exceeds Rs 6,600 crore ($1.50 billion). The orders are scheduled to be completed by April 2008.

Jindal Saw produces thick-walled pipes, submerged arc-welded pipes and cold-rolled steel coils. The products find application in the oil and gas infrastructure. It had commissioned a new plant for ductile iron pipes in Mundra.

The company has erected an integrated ductile iron pipe manufacturing plant of 2 lakh metric tonne (mt) per annum capacity, along with a blast furnace of 2.50 lakh tonne per annum capacity and a coke oven plant.