Jindal Saw Ltd Stock Split: OP Jindal Group-backed Jindal Saw Limited has split in the ratio of 1:2. The stock price which once traded near Rs 750 levels, was split to below Rs 370 levels. At a 1:2 split ratio, the number of shares would multiply into 2, doubling in size. However, the share price capital would remain the same, despite the stock becoming cheaper. In less than 2 years, Rs 15,000 invested in a bag corpus of over Rs 1.07 lakh, thanks to the split.
Jindal Saw Stock Split:
On the ex-date, the OP Jindal Group-backed stainless steel stock ended at Rs 369.8 apiece, down by 1.07% on NSE, with a market cap of Rs 23,649.01 crore. Adjusted to the split ratio, the stock's 52-week high and low are at Rs 383.85 apiece and Rs 164.28 apiece respectively.
Before the stock split, Jindal Saw's share price stood at Rs 749.25 apiece on NSE, after market hours of October 8.
Jindal Saw Stock Split:
The metal giant had fixed Wednesday, 9th October 2024 as the 'Record Date' for the purpose of determining the eligibility of Shareholders for the purpose of sub-division /split of the face value of equity shares of the Company from Rs. 2/- each fully paid-up to Re. 1/- each fully paid up.
Hence, the split ratio of 1:2. This will be the second stock split by Jindal Saw. The first was of 1:5 ratio, where a face value of Rs 10 each was split into Rs 2 each in December 2009.
Jindal Saw Stock Split Charm:
In stock split, the price value becomes cheaper of a stock, the capital reserve remains the same, while the number of shares in the portfolio rises.
So in this case, 1 equity share of Jindal Saw with face value of Rs 2, split to two shares with face value of Re 1 each. But the investors holding the stock for a long-term basis, make a big win.
Data from NSE showed that before the stock split, in January 2023, the lowest price level stood at Rs 103.75 apiece which was witnessed on January 2, 2023. So if an investor invested Rs 15,000 in Jindal Saw on January 2nd, last year, then they would have about 144.57 shares. Rounding it up to 145 shares.
Due to the split ratio of 1:2, these shares will multiply to become 290 shares (145X2). 290 shares at the closing price of Rs 369.80, is valued at Rs 1,07,242. Hence, investors make significant gains in less than 22 months.
Jindal Saw - BUY/SELL?
As per Trendlyne data, the consensus recommendation from 2 analysts for Jindal Saw Ltd. is STRONG BUY. EPS is expected to grow by 8.3% in FY25. The 1-year average target price on Jindal Saw is of Rs 870.50, hinting at potential 136% upside.
About Jindal Saw:
Jindal SAW manufactures SAW Pipes (Submerged Arc Welded Pipes) and spiral pipes for the energy transportation sector; carbon, alloy and seamless pipes and tubes for industrial applications; and Ductile Iron (DI) pipes & Fittings for water and wastewater transportation.
Jindal SAW pipes are energy-efficient, reduce dependence on fossil fuels, and help conserve natural resources.
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