Jindal Stainless shines after signing MoU with POSCO

The announcement was made after market hours on Wednesday, 10 April 2013.

Meanwhile, the S&P BSE Sensex was up 103.95 points or 0.56% at 18,518.02

On BSE, 27,981 shares were traded in the counter as against average volume of 59,384 shares in the past one quarter.

The stock hit a high of Rs 52.70 and a low of Rs 50.10 so far during the day. The stock had hit a 52-week high of Rs 88.70 on 11 December 2012. The stock had hit a 52-week low of Rs 44.05 on 26 March 2013.

The stock had underperformed the market over the past one month till 10 April 2013, sliding 8.96% compared with the Sensex's 6.45% fall. The scrip had also underperformed the market in past one quarter, declining 28.7% as against Sensex's 6.35% fall.

The small-cap company has equity capital of Rs 40.82 crore. Face value per share is Rs 2.

Jindal Stainless said that the company on Wednesday, 10 April 2013 signed a Memorandum of Understanding (MoU) with POSCO to mutually cooperate with each other for long-term joint business opportunities. The said MoU is applicable for 3 years and can be extended by mutual agreement.

The MoU calls for long term supply of 200 series stainless steel products of the company to POSCO or its subsidiaries. The two companies will also review joint establishment and exploration for nickel smelter process in Indonesia. The two companies will also review joint co-operation in Jindal Stainless' Odisha project. The two companies have also mutually agreed to co-operate on reviewing overseas joint projects including but not limited to the establishment of service centers and cold rolling mills.

Jindal Stainless reported net loss of Rs 257.39 crore in Q3 December 2012, higher than net loss of Rs 110.33 crore in Q3 December 2011. Net sales rose 35.4% to Rs 2576.55 crore in Q3 December 2012 over Q3 December 2011.

Jindal Stainless is engaged in manufacturing stainless steel. The products include stainless steel hot rolled and cold rolled coils, plates and flats, slabs and blooms. These products are used in nuclear plants, thermal power plants, petrochemicals, pharmaceutical, process industry, dairy industry, breweries and many more areas like, railways and coinage.

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