Jindal Saw Shares Jump 10% on $118M Middle East Investment

On Tuesday, Jindal Saw shares rose by 9.9 percent, reaching a day’s high price of Rs. 255 per share after the company announced its strategic investments in the UAE and Saudi Arabia to expand its pipe manufacturing footprint in the Middle East region, specifically targeting the oil and gas sector. 

Jindal Saw announced board approval for three international projects totalling around $118 million. The largest initiative includes establishing a 100 percent-owned step-down subsidiary in the United Arab Emirates (UAE), to build a seamless pipe manufacturing facility with an annual capacity of 3,00,000 tonnes for an investment of around US$ 105 million. This plant is expected to be completed in about three years to serve the MENA (Middle East and North Africa) region's oil and gas industry, which marks a major step in Jindal Saw's global expansion.

In Saudi Arabia, Jindal Saw will invest through its subsidiary Jindal Saw Holdings FZE in two joint ventures (JV). The first JV is with Buhur for Investment Company LLC. They will set up a helically spiral welded (HSAW) pipe plant, where Jindal Saw will hold a 51 percent stake and invest upto US$ 10 million, which aims to complete in two years. The second JV is with RAX United Industrial Company, which involves a ductile iron pipe project, with a 51 percent stake and an investment of upto US$ 3 million, expected to be done within 12 to 18 months. The company will take the necessary regulatory approvals for these projects if required.

Financially, Jindal Saw had reported FY25 results with the company posting a revenue from operations around Rs. 20,828.89 crore, a slight decline of about 0.61 percent from the previous year’s Rs. 20,957.69 crore. EBITDA increased marginally by 3.84 percent to Rs. 3,454 crore, while profit before tax (PBT) rose 6 percent to Rs. 2,349 crore. However, net profit declined by 8.47 percent to Rs. 1,458 crore compared to Rs. 1,593 crore in FY24. The Q4FY25 results reflected a sharp decline in profitability, and that has impacted the overall FY25 results.

Market analysts remain cautiously optimistic, while noting that Jindal Saw’s standalone $1.32 billion order book, with the majority of the orders coming from Iron and Steel Pipes and the remaining from Pellets. This provides strong revenue visibility for the near term. The expansion projects in the UAE and Saudi Arabia align well with the company’s strategy to capitalize on infrastructure and oil and gas sector growth in the Middle East. The spending on Urbanization and smart city-related projects is one of the key drivers for its order book.