JINDALSTEL - Fundamental Analysis

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

Fundamental Rating: 3.7

Here’s the full analytical breakdown of Jindal Steel & Power Ltd (JINDALSTEL) — a heavyweight in the steel sector that’s showing both strength and volatility 🔍🏭

📊 Core Financials Check-Up

Profitability

ROE: 7.83% — modest, signaling slower equity return versus peers.

ROCE: 10.8% — decent, though not a standout in capital efficiency.

Earnings Flow

EPS: ₹27.6 — respectable, aligns with profitability.

PAT decline: ₹950 Cr. → ₹550 Cr. — steep 41% drop; cyclical softness or exceptional prior quarter.

Debt & Capital

Debt-to-equity: 0.39 — controlled and stable, good for a capital-heavy firm.

Dividend Yield: 0.20% — minimal, not intended to be income-generating.

📉 Valuation Insights

Metric Value What It Suggests

P/E Ratio 28.0 🟠 Above industry average (22.4) — expensive

P/B Ratio ~2.12 Market pricing in growth and stability

PEG Ratio -1.79 ⚠️ Negative PEG — unreliable growth estimates or earnings volatility

💡 Interpretation: Stock seems relatively overpriced given its earnings contraction and PEG uncertainty. May be riding momentum or thematic tailwinds like capex optimism.

🧠 Business Model & Edge

Core operations in steel, power, and infrastructure — heavily tied to India's industrialization.

Vertically integrated — from mining to finished products.

Exposure to government and private infra spending offers cyclical upside.

Rise in FII (+0.17%) and DII (+0.37%) holdings — signs of institutional confidence.

Faces risk from global steel cycles, input cost spikes, and demand variability.

📍 Technical Levels & Entry Zone

Current Price: ₹984

Above both DMA-50 (₹946) and DMA-200 (₹919) — bullish setup.

RSI: 60.1 — strong, but nearing overbought.

MACD: +13.0 — bullish momentum in place.

📌 Ideal Entry Zone

Consider entry on dips between ₹910–₹950, especially on volume recovery.

Strong support around ₹880; breakout possible above ₹1,000.

🕰️ Long-Term View

A solid cyclical bet, best suited for investors with a 3–5 year horizon who expect capex recovery and commodity tailwinds.

Watch out for global steel pricing, policy-driven infra moves, and input costs.

Not a deep-value play currently — more of a momentum + macro conviction pick.

If you're building a metals theme, you might want to contrast with JSW Steel, Tata Steel, or even APL Apollo for exposure diversity. Want me to dig into one of those next? 🧠📘

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