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Is Jindal Stainless a durable product for long-term investment like its own stainless steel?

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We are all familiar with the reasons behind the widespread popularity of stainless steel, predominantly due to its exceptional durability and effortless upkeep.

Lets analyze if India’s premier stainless steel manufacturing company, Jindal Stainless ltd., is as sustainable and as enduring an entity as its own products;

Above is a snippet from JSL’s annual report

  1. JSL is one of the very few companies with a Diverse Product Range catering to a wide array of industries such as automotive, railways, transportation, infrastructure, consumer durable, banks, and more.
  2. Due to its wide portfolio range, it benefits from government initiatives in various sectors it caters to.
  3. In the 2024 budget, Indian Government announced that it would exempt customs duty on 25 critical minerals including nickel, copper, cobalt, silicon, and molybdenum, which are among its primary raw materials.
  4. Company imports around 35%-40% of its raw material, primarily comprising stainless steel scrap and nickel. However, it procures 90% of its inputs from recycled scrap.
  5. Co.’s Strategic collaborations in Indonesia to invest in Nickel Pig Iron (a major raw material), developing as well as operating stainless steel melt shop made it the first ever Indian Company to do so.
  6. Its recent association with  JBM Auto Ltd, India’s leading electric bus manufacturer, to produce over 500 energy-efficient and lightweight stainless steel electric buses , promoting sustainable transportation solutions.
  7. Company predominantly serves the domestic market, thus mitigating direct exposure to the current geopolitical tensions.
  8. India’s stainless steel consumption has shown a compound annual growth rate (CAGR) of approximately 7–7.5%, indicating a steady and significant increase in the demand for stainless steel in the coming years.

FY 24 financial highlight:

Sales Volume (tonnes)Net Revenue (INR crore)EBITDA (INR crore)PAT (INR crore)
21,74,61038,3564,0362,531
23% increase9% increase13% YoY growth26% YoY growth

Seems like there is a considerable journey ahead for the company, and one has the opportunity to ride along with it…

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Keeping The World in Motion: Amara Raja

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Batteries are crucial for industries in India to power equipment and machinery, from small devices to large machinery, providing backup power during outages and preventing downtime. They are also used in renewable energy systems like solar power plants to store energy.

Amara Raja Energy & Mobility Limited (ARE&M), the flagship company of Amara Raja Group, is the technology leader and one of the largest manufacturers of lead acid batteries for industrial and automotive applications in India’s storage battery industry;

Industrial Batteries

Automotive Batteries

Li-ion Batteries

Despite concerns over economic conditions, the battery market size is expected to reach USD 15.65 billion by 2029, growing at a CAGR of 16.80% during the forecast period (2024-2029)

Government initiatives, including the ₹ 20 lakh crore special economic package, are geared towards strengthening the automotive manufacturing ecosystem. The Product Linked Incentive scheme, with an outlay of $3.5 billion, offers up to 18% financial incentives to boost advanced automotive technology manufacturing domestically.

Despite facing significant inflationary pressure and a downturn in overall industrial capital expenditure, the company has successfully established its unique presence in both the Domestic and Global Markets.

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Hidden contributors to the advancement of India’s Electric Vehicle (EV) Ecosystem.

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The Indian electric vehicle industry is expected to grow significantly, reaching a market size of USD 8 billion by 2027 with a CAGR of 43% between 2022 and 2027. Two-wheelers are the dominant segment, followed by three-wheelers and cars. Major players like Tata Motors, Ola Electric, Bajaj Auto, and Hyundai are investing in the market. The government’s FAME II scheme provides incentives for electric vehicle adoption, promising a bright future for the industry in India.

Materials like lithium-ion batteries, electric motors, power electronics, carbon fiber, and aluminum are essential for developing efficient electric vehicle technologies. Semiconductor materials like silicon and gallium nitride are used in electronic control units for managing systems in electric vehicles. Large Companies like Tata Elxsi, Mahindra Electric, Ather Energy, and TVS Motor Company are working on advanced technologies to enhance driving experience and promote sustainable mobility in India.

However, there are some mid/small sized companies also that are indirectly involved in the process. A major intermediary being the developer of technologies for connected car and automotive electronics.

Yes, they provide advanced automated solutions for all types of vehicles.

  • There is a growing need for automated solutions for electric vehicles (EVs) due to several factors.
  • Automated technologies can enhance the performance and efficiency of EVs, ensuring optimal battery management, range optimization, and overall driving experience.
  • Automation can improve safety features in EVs, such as collision avoidance systems and autonomous emergency braking, making them more secure on the road.
  • Automated solutions can enable smart charging infrastructure, remote diagnostics, and predictive maintenance for EVs, enhancing the user experience and convenience for EV owners.
  • Overall, automated solutions play a crucial role in advancing the capabilities and usability of EVs in the rapidly evolving automotive industry.

The race has just begun for the developers and there are miles to go……

Our favourite developer is Danlaw Technologies India Ltd., who is yours…???

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