Jindal Worldwide hits new high; stock zooms 50% in three days

The stock hit a new high of Rs 898, up 17% on the BSE in intra-day trade

Jindal Worldwide hit a new high of Rs 898, up 17% on the BSE, extending its past two days rally in otherwise subdued market.

The stock of textiles Company zoomed 50% from Rs 600 on March 9, 2018, as compared to 1.3% rise in the S&P BSE Sensex. In past one year, it rallied 560% from Rs 136, against 14.6% rise in the benchmark index.

Jindal Worldwide is having a large consumer base in India within the home textile domain and strong and reputed clients like Wal-Mart, Springs, Disney, WestPoint Stevens, Carrefour to name a few, whom the company is serving directly or via vendors.

For the first nine months (April-December) of the current financial year 2017-18 (FY18), the company reported 26.6% year on year (YoY) growth in net profit at Rs 534 million. Revenue from operations grew 50% to Rs 11,801 million over the same period previous fiscal. Operating profit margin declined 300 bps at 10.5%, due to higher other expenditure, which rose 67% YoY during the period.

Last week, Jindal Worldwide said it has acquired 100% stake in Jindal Denim (India) for better expansion of business and to further strengthen the position of the company in the denim segment of textile industry.

As of December 2017, the promoters held 61.15% stake in Jindal Worldwide followed by individual shareholders (25.83%) and bodies corporate (12.83%).

At 10:55 am; the stock was trading 8% higher at Rs 828 on the BSE, against 0.4% decline in the Sensex. The trading volumes on the counter more than doubled with a combined 662,300 shares changed hands on the BSE and NSE so far.