JINDALSAW - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s a deep-dive into JINDALSAW — a stock that seems to be lurking below radar, yet packing intriguing value 🍽️📉

📊 Core Financials Overview

Profitability & Returns

ROE: 13.7% — solid, reflects decent shareholder return.

ROCE: 19.4% — excellent, shows strong operating efficiency.

EPS: ₹27.2 — impressive given the low P/E.

Earnings Volatility

PAT fell sharply from ₹479 Cr. to ₹86.9 Cr. — an 81.9% drop is concerning. Likely due to exceptional previous quarter or cyclical headwinds.

Balance Sheet Strength

Debt-to-equity: 0.43 — comfortably low for a capital-intensive business.

Dividend Yield: 0.92% — modest, not the main attraction here.

📉 Valuation Snapshot

Metric Value Commentary

P/E Ratio 9.42 ➕ Undervalued vs industry PE of 23.8

P/B Ratio ~1.22 Reasonable — price above book, but still moderate

PEG Ratio 0.16 🔥 Cheap relative to growth rate

🔍 Interpretation: Current valuation suggests discount pricing, especially considering its earnings history and book strength.

🧠 Business Model & Edge

JINDALSAW is a key player in pipes (ductile iron, seamless, ERW) — vital for infrastructure, water, and energy sectors.

Operates in a cyclical, capex-heavy segment — making performance lumpy, but benefits greatly from infrastructure upcycles.

Export strength and product diversification offer a competitive shield.

DII Holding: +0.37% — signals growing domestic institutional interest.

FII Holding: -1.87% — slight pullback, maybe due to earnings dip or macro rotation.

📍 Technical & Entry Zone

Current Price: ₹217, below DMA-50 (₹231) and DMA-200 (₹252) — bearish short-term sentiment.

RSI at 35.4 — approaching oversold zone.

MACD -3.21 — weak momentum, suggests waiting for confirmation.

📌 Ideal Entry Zone

₹205–₹220, but only after signs of bottoming — RSI crossing 40 or MACD narrowing would help.

Watch for support near ₹200, resistance at ₹250.

🕰️ Long-Term Outlook

A value pick for infrastructure bulls — cyclical upside potential when government spending rises.

Strong ROCE and low debt make it resilient despite earnings fluctuation.

Good for 2–4 year horizon, especially if you believe in the capex revival narrative.

Thinking about building a long-term industrials/infrastructure portfolio? You could complement JINDALSAW with stocks like Welspun Corp, Ratnamani Metals, or Apar Industries for breadth. Want me to analyze one of those next? 🧠📈

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