JINDALSAW - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | JINDALSAW | Market Cap | 14,245 Cr. | Current Price | 223 ₹ | High / Low | 260 ₹ |
| Stock P/E | 18.2 | Book Value | 197 ₹ | Dividend Yield | 0.90 % | ROCE | 8.84 % |
| ROE | 6.39 % | Face Value | 1.00 ₹ | DMA 50 | 205 ₹ | DMA 200 | 200 ₹ |
| Chg in FII Hold | -0.63 % | Chg in DII Hold | 2.29 % | PAT Qtr | 114 Cr. | PAT Prev Qtr | 227 Cr. |
| RSI | 53.6 | MACD | 12.0 | Volume | 40,17,176 | Avg Vol 1Wk | 59,67,768 |
| Low price | 153 ₹ | High price | 260 ₹ | PEG Ratio | 1.59 | Debt to equity | 0.22 |
| 52w Index | 64.9 % | Qtr Profit Var | -76.0 % | EPS | 12.3 ₹ | Industry PE | 22.1 |
Financials: Jindal Saw shows modest fundamentals with ROCE at 8.84% and ROE at 6.39%. EPS of ₹12.3 supports profitability, but quarterly PAT declined sharply to ₹114 Cr. from ₹227 Cr. Debt-to-equity ratio of 0.22 indicates manageable leverage.
Valuation: P/E of 18.2 is below industry average (22.1), suggesting relative undervaluation. PEG ratio of 1.59 highlights fair growth-adjusted valuation. Dividend yield of 0.90% adds modest investor appeal.
Business Model: Jindal Saw operates in steel pipes and infrastructure, with competitive advantage in scale and diversified product lines. Profitability remains under pressure due to earnings volatility.
Entry Zone: Attractive entry between ₹210–₹225 near DMA 50 (₹205) and DMA 200 (₹200). Long-term holding requires monitoring earnings recovery and margin stability.
Positive
- EPS of ₹12.3 supports valuation strength
- P/E of 18.2 below industry average (22.1) indicates undervaluation
- Dividend yield of 0.90% adds investor appeal
- DII holdings increased (+2.29%), showing domestic confidence
- Debt-to-equity ratio of 0.22 reflects financial stability
Limitation
- ROE (6.39%) and ROCE (8.84%) are modest compared to peers
- Quarterly PAT declined sharply (₹227 Cr. → ₹114 Cr.)
- RSI at 53.6 shows neutral momentum
- PEG ratio of 1.59 indicates limited growth-adjusted value
Company Negative News
- Earnings volatility with PAT decline (-76%)
- FII holdings reduced (-0.63%), showing foreign investor caution
Company Positive News
- Domestic institutional inflows (+2.29%) add confidence
- Technical indicators (MACD 12.0) show bullish bias
- Strong 52-week index gain (+64.9%) highlights price momentum
Industry
- Steel and infrastructure sector benefits from construction demand
- Industry P/E at 22.1 highlights Jindal Saw trading at discount
Conclusion
Jindal Saw presents modest fundamentals with undervaluation and sector demand support, but earnings volatility and weak return ratios limit upside. Entry around ₹210–₹225 offers a favorable risk-reward opportunity. Long-term investors should monitor profitability recovery and institutional flows for sustained holding.
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