JINDALSAW - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.5

📊 Core Financials & Profitability

Profitability: Quarterly PAT of ₹364 Cr, down from ₹474 Cr — a dip of 18.4%, but still robust. EPS of ₹28.0 is strong for a ₹209 stock.

Return Metrics

ROE: 17.4% and ROCE: 20.9% — excellent, indicating efficient capital deployment.

Debt Profile: Debt-to-equity at 0.26 — very healthy, showing financial discipline.

Dividend Yield: 0.96% — modest but consistent, adding to shareholder value.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 7.47 Deeply undervalued vs. industry PE of 24.0.

P/B Ratio ~1.12 Fairly priced relative to book value ₹187.

PEG Ratio 0.11 Extremely attractive — strong growth at low valuation.

🔍 Conclusion: Jindal Saw is trading at a significant discount to intrinsic value. PEG and P/E ratios suggest strong upside potential.

🏭 Business Model & Competitive Edge

Core Operations: Jindal Saw manufactures SAW pipes, ductile iron pipes, seamless tubes, and pellets — critical for oil, gas, and water infrastructure.

Competitive Advantage

Integrated manufacturing and global exports.

Strong demand from infrastructure and energy sectors.

Growth Outlook

Analysts project a 1-year price target of ₹285, implying ~37% upside

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Financial strength score: 75/100; valuation score: 57.5/100 — solid fundamentals

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📉 Technicals & Entry Zone

RSI: 53.1 — neutral, no strong momentum.

MACD: -0.12 — mild bearish signal.

DMA Levels: Price near 50-DMA and below 200-DMA — short-term weakness, long-term opportunity.

📌 Suggested Entry Zone: ₹195–₹210 — near support levels and technical averages.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, undervaluation, and sector tailwinds support long-term value.

Buy on Dips: Especially if price nears ₹200 or RSI dips below 50.

Monitor: Export demand, raw material costs, and infrastructure capex cycles.

Let me know if you'd like a peer comparison with Ratnamani Metals or Welspun Corp next.

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