IdeasNeosagi

Jindal Drilling Ltd.

Long
NSE:JINDRILL   JINDAL DRILLING
*Jindal Drilling Ltd.*

C&H Formation: Yrly Basis
Price BreakOut Needed >313. If Sustained, Good to Go!!!
Strong Vol. Consolidation / Continued BuiltUp.
Resistance at 331/350/387

*With Upside, Trail SL*
*Book Profit as per Risk Appetite*

*Snapshot*
Part of Dharam Pal Jindal Group. Leading Indian company in offshore drilling / allied services (incl. Directional drilling/Mud logging). To be benefited by improvement in Rig charter rates (~$25K/day on FY19 to $42K/day now). All 5 rigs owned/leased are contracted as on date.
Re-deployment risk of the rigs is expected to be low

Increasing Sales/Profitability on Yrly Basis.
Sharp Improvement in RoA/RoE/RoCE for FY23 vs. (Double Digits) FY22 vs. FY21.
Improving Leverage/TNW/Increasing Cash Reserve.
+ve Ops. Cash Flow/WC Cycle.
Promoter Stake Stable. FII Stake Increasing.

*Concern:*
susceptibility of charter rates (at time of signing of contracts) to crude oil prices, being inherently volatile. Litigation with ONCG (under SC) of Rs.160 Crs.

*Do Your Own Research as Well. This is Just an Opinion.*
Your Opinion may Differ/Respected.
Happy Investing :)

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