Recommendation from Textiles & Apparel and Steel - Rolling Sector

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.[EasyDNNnews:PaidContentStart]

JINDAL WORLDWIDE LTD
CMP - ₹324.65
BSE CODE 531543
Volume 3,811
Face Value ₹1
Target ₹351 - ₹357
Stoploss ₹302 (CLS)

Jindal Worldwide Ltd has established itself as a leader in the textile sector, specialising in manufacturing denim fabric, premium shirting, yarn dyeing, bottom weights, and home textiles. The company showcased impressive growth in Q2FY25, with total revenue surging 46 per cent to ₹571 crore, up from ₹392 crore in Q2FY24, driven by robust demand for finished fabric in domestic and export markets. Net profit also soared around 36 per cent year-on-year, climbing from ₹12.76 crore to ₹17.33 crore. The stock recently surged nearly 20 per cent in a single trading session, reflecting heightened investor interest. The Indian textile sector, despite overall sluggishness in corporate earnings, shows resilience, bolstered by speculation around the China Plus One strategy potentially gaining traction as Donald Trump returned to office. This scenario could present significant opportunities for Indian manufacturers. Considering the company’s robust growth trajectory and market potential, we recommend BUY.

Rathi Steel & Power Ltd
CMP - ₹46.70
BSE CODE 504903
Volume 3,00,633
Face Value ₹10
Target ₹50 - ₹52
Stoploss ₹43 (CLS)

Rathi Steel & Power Ltd is engaged in manufacturing rebars and wire rods. Rebars are primarily used in the construction sector, while Wire rods have diverse industrial applications, including being drawn into wires and processed into bright bars and other products. Considering the company’s performance for Q2FY25, the revenue declined marginally by 4 per cent to ₹121 crore from ₹126 crore in Q2FY24. This decline was affected by heavy monsoon rains and the expected sluggish government spending during the quarter, which hampered construction and infrastructure activities. Net profit, on the other hand, soared by leaps and bounds from ₹0.83 crore to ₹6.94 crore. The stock, delivering over 50 per cent returns YTD, remains significantly below its 52-week high of ₹97.81 but has recently attracted strong buying interest. With expectations of increased government spending in the second half of the fiscal year and a pickup in construction activities, the stock holds considerable upside potential. Hence, we recommend BUY.

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