This stock has 7 per cent market share in Indian denim fabric industry

H&M, Walmart, pantaloons, Pepe jeans, Peter England, HRX, Being Human are among the clients of the company.

On December 29, the shares of Jindal Worldwide Ltd closed 0.4per cent up at Rs 427.8. 

Founded in 1986, Jindal Worldwide Ltd (Jindal) today is a diversified and integrated textile, fabric and shirting manufacturer and one of the world’s largest denim fabric manufacturers. It has a 7 per cent market share in Indian denim fabric industry.  

The company product offerings include denims, bottom weight, fabrics, premium shirting and home textile products. The company has four manufacturing plants located in Ahmedabad, Gujarat.  

As per FY22, about 62 per cent of the total revenue came from denim business, 13 per cent from bottom weights, 7 per cent from premium shirting and the rest 18 per cent from other segments. About 82 per cent of the revenue came from the international market, while the rest 18 per cent came from the domestic market.  

Jindal Worldwide is pursuing diversification through clear strategies and thus forayed into the high growth EV Industry by acquiring Earth Energy in May 2022, an EV startup. Earth Energy is a green vision initiative incorporated in 2017 that stood as one of top 20 most promising start-ups in 2020.  

For the latest September quarter, on a consolidated basis, the revenue registered a YoY decline of 24.3 per cent to Rs 4775 crore from 6305 crore. However, the net profit jumped YoY by 32 per cent from Rs 25 crore in Q2FY22 to Rs 32.7 crore in Q2FY23.  

The company has a market capitalisation of Rs 8570 crore. The stock is trading at a PE multiple of 62x.