Jindal Saw Ltd: Operational Highlights

Jindal SAW Ltd (Rs.81.10) is the flagship company of the US $ 18 billion O.P. Jindal Group. The company is in a commanding position in India's tubular market, being the undisputed leader with a turnover in excess of Rs.7500 crores. It is one of the country's largest producers of SAW pipes, which is widely used in the energy sector for the transportation of oil and gas.

With integrated facilities at multiple locations and an ever expanding market opportunity, Jindal SAW Ltd has diversified from a single product company to a multi-product company, manufacturing large diameter submerged arc pipes and spiral pipes for the energy transportation sector; carbon, alloy and stainless steel seamless pipes and tubes manufactured by conical piercing process used for industrial applications; and Ductile iron (DI) pipes for water and wastewater transportation. 

Besides these, the company also provides various value added products like pipe coatings, bends and connector castings to its clients.

Now, if the price of Crude Oil continues to improve (moves up), from the current rates, in the international market, the demand for its products might take an exponential jump; as new rigs will start to function, escalating the demand for SAW Pipes.

The investors are therefore, suggested to buy the scrip of Jindal Saw Ltd, for a short term target of Rs.92.