Multibagger stock : Jindal Drilling & Industries Limited (LDIL) stock has been one of the few multibagger stocks of 2021 and has given excellent returns in 2022 as well. According to the share price history of Jindal Drilling, the stock has increased from Rs 94 to Rs 217 in the last one year. Thus, the stock has gained almost 130 per cent in this period. At the same time, so far this year, the stock has gained about 55 percent. However, HDFC Securities still sees an upside in this multibagger energy stock.
Shares may be worth Rs 283 in a few months
According to a report by HDFC Securities, the stock of Jindal Drilling is still in a strong position in terms of fundamentals and it can go up to Rs 283 from the current Rs 217 in the next few months. Thus, the brokerage expects 30 per cent returns in the next few months in this stock.
Uma Exports IPO: This company’s IPO came before LIC, bidding will start from March 28, know details
Acquisitions are beneficial
HDFC Securities said, “JDIL has acquired Veen Drilling Pvt. Ltd. An offshore jackup rig ‘Jindal Supreme’ was purchased from The acquisition of this rig was very beneficial for the company as the company would not bear the burden of higher charges associated with the rig. The acquisition of the rig reflects better capital allocation management in the JV’s loan balance. The company is focusing on improving cost efficiency and operating margins. The acquisition of two rigs by him during the last two years is an initiative in this direction.”
Increased trust due to these reasons
The brokerage said, “The strong demand for oil and natural gas and increase in their prices, charter rates under renewed contracts will see a significant increase in its profits and revenues. The company is also looking to expand its business internationally.
HDFC Securities while advising positional investors to invest in Jindal Drilling said, “In the next 2-3 quarters, the stock may go up to Rs 245 in base case and Rs 283 in bull case. Investors can buy it between Rs 214-226.
Disclaimer : Opinions given on moneycontrol.com are personal views of the experts. Website or management is not responsible for this. Money Control advises users to consult a certified expert before taking any investment decision.
,