Jindal Stainless, Jindal Stainless (Hisar) rally up to 35% in 3 days

The government has issued an order to levy provisional countervailing duty on certain types of flat stainless products for a period of four months

Shares of iron & steel products companies were in focus at the bourses with Jindal Stainless and Jindal Stainless (Hisar) rallying up to 35 per cent in the past three days after the government imposed provisional countervailing duty (CVD) on stainless steel flat products imported from Indonesia.

Jindal Stainless hit a 52-week high of Rs 58.25, after surging 10 per cent on the BSE in an otherwise weak market on Wednesday. In the past three days, the stock has zoomed 35 per cent from the level of Rs 43.25, hit on October 9.

“It is pertinent to note that Ministry of Finance, Government of India vide notification dated October 9, 2020, based on the findings of Directorate general of Trade Remedies, issued an order to levy provisional countervailing duty on certain types of flat stainless products for a period of four months,” Jindal Stainless said in exchange filing on clarification on increase in volumes.

The increase in volume of scrip of the Company in recent past is absolutely market driven and we have no comments on the same, it said.

At 11:03 am, Jindal Stainless was trading 7 per cent higher at Rs 56.50, against 0.54 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than two times with a combined 3.6 million equity shares changing hands on the NSE and BSE, so far.

Meanwhile, shares of Jindal Stainless (Hisar) were also up 5 per cent at Rs 98. The stock hit an intra-day high of Rs 100 on the BSE. The stock hit a 52-week high of Rs 109.70 on August 21, 2020. In the past three days, it has surged 15 per cent from the level of Rs 86.60.

Last month, CARE Ratings reaffirmed the long-term credit facilities with stable outlook for Jindal Stainless (Hisar).

The company’s rating was retained in light of the Company maintaining an accomplished track record in financial and operational domains. Additionally, JSHL’s strength to serve diversified end-user industries, with an emphasis on value-added products, has proved to be favourable in the rating analysis of the Company. A healthy per-tonne operating profit, coupled with debt reduction and improved cashflow, weighed positively for the Company on the rating scale, it said.