⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JINDALSAW - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | JINDALSAW | Market Cap | 12,673 Cr. | Current Price | 198 ₹ | High / Low | 286 ₹ |
| Stock P/E | 11.1 | Book Value | 192 ₹ | Dividend Yield | 1.01 % | ROCE | 20.9 % |
| ROE | 17.4 % | Face Value | 1.00 ₹ | DMA 50 | 182 ₹ | DMA 200 | 196 ₹ |
| Chg in FII Hold | -1.26 % | Chg in DII Hold | -0.85 % | PAT Qtr | 227 Cr. | PAT Prev Qtr | 79.3 Cr. |
| RSI | 59.6 | MACD | 3.96 | Volume | 33,16,778 | Avg Vol 1Wk | 3,12,54,537 |
| Low price | 153 ₹ | High price | 286 ₹ | PEG Ratio | 0.16 | Debt to equity | 0.28 |
| 52w Index | 34.1 % | Qtr Profit Var | -52.5 % | EPS | 17.9 ₹ | Industry PE | 18.1 |
📊 Core Financials
- Revenue Growth: PAT at ₹227 Cr vs ₹79.3 Cr, showing strong improvement
- Profit Margins: Healthy with ROE at 17.4% and ROCE at 20.9%
- Debt Ratios: Debt-to-Equity at 0.28, manageable leverage
- Cash Flows: Dividend yield of 1.01% provides modest shareholder returns
- Return Metrics: Strong efficiency compared to peers
💹 Valuation Indicators
- P/E Ratio: 11.1 (below industry average of 18.1, undervalued)
- P/B Ratio: ~1.03 (Price ₹198 / Book Value ₹192, near fair value)
- PEG Ratio: 0.16 (suggests undervaluation relative to growth)
- Intrinsic Value: Attractive compared to peers, offering value opportunity
🏢 Business Model & Competitive Advantage
- Operates in steel pipes, tubes, and infrastructure solutions
- Competitive advantage lies in scale, diversified product portfolio, and global presence
- Strong operational efficiency supports long-term sustainability
📈 Entry Zone Recommendation
- Current Price: ₹198
- Support Zone: ₹180 – ₹195 (near DMA 50 & DMA 200, RSI at 59.6 indicates neutral momentum)
- Long-term Holding: Attractive for value investors given low P/E and strong ROE/ROCE
✅ Positive
- Low P/E ratio compared to industry average
- Strong ROE and ROCE indicate efficient capital use
- Dividend yield of 1.01% adds shareholder value
⚠️ Limitation
- Quarterly profit variation (-52.5%) shows earnings volatility
- FII (-1.26%) and DII (-0.85%) holdings decreased, reducing institutional confidence
- Stock trading close to book value limits margin of safety
📉 Company Negative News
- Institutional investors reduced holdings
- Quarterly profit variation indicates inconsistency in earnings
📈 Company Positive News
- PAT improved significantly (₹227 Cr vs ₹79.3 Cr)
- MACD positive (3.96) suggests improving technical trend
🌐 Industry
- Steel and infrastructure sector benefits from global demand and government projects
- Industry P/E at 18.1 highlights JINDALSAW trading at a discount
🔎 Conclusion
JINDALSAW demonstrates strong fundamentals with efficient capital use, low debt, and undervaluation compared to peers. However, earnings volatility and reduced institutional confidence are concerns. Entry around ₹180–₹195 offers a favorable margin for value investors. Long-term holding is suitable given strong ROE/ROCE, but monitoring profit consistency is essential.