Pipes, Projects & Possibilities
JINDALSAW, a major SAW pipe manufacturer which aids the water infrastructure and energy space, could face a challenging FY26 on the back of global headwinds; however much of it appears factored into the current stock price and given the criticality of the domestic project momentum, we believe that barring the next few quarters, the outlook/revenue visibility is expected to pick pace on the back of strong foundation built on past 3 years. JINDALSAW, has leveraged India’s massive water infrastructure push under the Jal Jeevan Mission to ride the premium OCTG demand via its high-margin joint venture with Hunting PLC, the company has strategically positioned itself across critical growth areas. It’s deepening presence in international markets-most notably, Saudi Arabia’s ambitious NEOM project, underscores a conscious diversification of both revenue streams and geographic exposure. Simultaneously, the company’s order book, targeted capacity expansions, and focus on operational efficiency indicate a structurally sound foundation for sustained growth.
We initiate Buy with price target at INR 387
JINDALSAW’s has built a strong foundation and a good balance sheet over the past 3 years. By harnessing megatrends in domestic water infrastructure, expanding its international footprint, and entering import-substitution domains through technological tie-ups, the company is building a diversified, high-ROCE portfolio. We assign a valuation multiple of a 12x of its FY27E EPS, based on superior margin profile, to arrive at our target price for INR 387.
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