Stock to buy: If you are looking for a strong stock, you may keep an eye on Jindal Drilling & Industries Limited (JDIL) Share of DP Jindal Group. Jindal Drilling Share is one of the multibagger stocks in 2021 which is giving great returns even in 2022. The stock has risen from Rs 94 to Rs 217 in the last one year. The stock has grown by about 130 percent during this period. In year-on-year (YTD) time, it has risen about 55 percent. According to the brokerage house, there is a possibility of further rise in the company’s stock.
Stock price may increase by 30 percent
Domestic brokerage house HDFC Securities sees further upside in this multibagger energy stock. According to the brokerage firm, by the next month it can increase to around 30 percent. According to the report of HDFC Securities, Jindal Drilling share price may go up to Rs 283 from the current level of Rs 217 per share.
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What did the brokerage house say?
HDFC Securities said, “JDIL had acquired an offshore jack-up rig ‘Jindal Supreme’ from Venus Drilling Pvt Ltd in November 2021 for $16.75 million. The acquisition of the rig will be beneficial as the rental charges associated with the rig are now borne by the company. The company is focusing on improving its cost efficiency and operating margin. The acquisition of two of their rigs in the last few years is an initiative in that direction.” The reason being, charter rates under renewal contracts will see a sharp jump, which will lead to improvement in its top-line and bottom-line. The company is also looking for international business expansion.
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HDFC Securities said, “We expect Revenue/EBITDA to grow at a CAGR of 15.9 per cent/40.5 per cent in FY2011-FY24E. We assume the Base Case Fair Value of the Stock is 245 and the Bull Case Fair Value 283. Investors can buy the stock in each level band of ₹214-226 and add on further downside in the ₹187 to 190 band.”