Jindal Group Stock Hits 20% Upper Circuit, Nears 52W-High; Here’s Why

The shares of Jindal Worldwide Ltd. had significant buying action on Tuesday, December 3rd, which caused the stock to lock in an upper circuit limit during afternoon trading. After rising 20% from the previous closing of Rs 322.80, the stock on the NSE began at Rs 324.20 per share and soared to an upper circuit limit at Rs 387.25. The company's market value was Rs 7,767 Cr.

The primary business operations of Jindal Worldwide Ltd, which operates in the textiles sector, include the production of denim fabric, high-end shirts, yarn dyeing, bottom weights, and home textiles via its several internal divisions.

Jindal Worldwide Share Price Target

"After peaking near the 436 mark in February 2024, the stock has undergone a sharp correction, dropping approximately 163 points-equivalent to a 38% decline. This substantial pullback has brought the price down to a critical technical level, where it has formed a double bottom pattern around the 200-day Exponential Moving Average (DEMA) H/L band on the weekly chart. The double bottom formation indicates strong support and often signals a potential trend reversal from bearish to bullish," said Jigar Shantilal Patel of Anand Rathi.

"Moreover, the presence of bullish divergence in the RSI on the weekly timeframe, coupled with the solid support near the 200 DEMA H/L band, reinforces the likelihood of a positive momentum shift. These technical signals suggest that the stock could witness a buildup of bullish momentum in the coming weeks," the analyst added.

"From a strategic standpoint, investors may consider buying or accumulating the stock within the 300-320 range, with a potential upside target of 370. To manage risk, it is recommended to maintain a stop-loss at 280 on a daily closing basis," Jigar Shantilal Patel recommended.

Jindal Worldwide Financials

The company's net profit in Q2FY25 was Rs. 17.47 crore, increasing 43.41% from Rs. 12.18 crore in Q2FY24, while its net sales in the September 2024 quarter were Rs. 567.59 crore, rising 41.83% from Rs. 400.20 crore in the September 2023 quarter. EBITDA increased 44.52% from Rs. 27.85 crore in the September 2023 quarter to Rs. 40.25 crore in the September 2024 quarter.

About Jindal Worldwide

Dr. Yamunadutt Agrawal founded Jindal Worldwide Ltd. (Jindal) in 1986. It is now one of the largest manufacturers of denim textiles globally and a diversified, integrated manufacturer of textile fabrics and garments. The company's capabilities, which include cutting-edge integrated facilities for premium spinning, weaving, dying, and packing, are dispersed throughout four manufacturing plants in Ahmedabad, Gujarat. Today, Jindal is expanding into new, high-growth industries, starting with an electronic two-wheeler vehicle enterprise. With a strong return ratio of 11% for ROE and 16% for ROCE, it is the largest fully integrated denim fabric maker in Asia.

Disclaimer

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