JINDALSTEL - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 4.3

📊 Core Financials & Profitability

Profit Growth: PAT rose from ₹1,148 Cr to ₹1,624 Cr — a healthy 11.5% quarterly jump. EPS of ₹37.1 is strong for a ₹1,048 stock.

Return Metrics

ROE: 9.37% and ROCE: 11.7% — decent, though not industry-leading.

Debt Profile: Debt-to-equity at 0.15 — very low for a steel company, indicating strong financial discipline.

Dividend Yield: 0.19% — minimal, suggesting reinvestment focus.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 22.1 Fairly valued vs. industry PE of 23.1.

P/B Ratio ~2.15 Reasonable relative to book value ₹488.

PEG Ratio -1.14 Negative PEG suggests earnings contraction or unreliable growth forecast.

🔍 Conclusion: Valuation is balanced. PEG ratio flags caution, but low debt and strong earnings support intrinsic value.

🏭 Business Model & Competitive Edge

Core Operations: Jindal Steel & Power Ltd operates in steel, power, and mining — with a diversified footprint across India, Africa, and Australia.

Competitive Advantage

Integrated operations and backward linkages in iron ore and coal.

Strong export presence and domestic infrastructure demand.

Growth Outlook

Analysts forecast a 1-year price target of ₹1,058

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Government’s ₹5,000 Cr sustainable steel mission and China’s production cuts may support pricing tailwinds

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📉 Technicals & Entry Zone

RSI: 60.8 — slightly bullish, but not overheated.

MACD: 17.2 — positive momentum.

DMA Levels: Price above both 50-DMA and 200-DMA — medium-term strength.

📌 Suggested Entry Zone: ₹1,000–₹1,030 — near 50-DMA, offering a better margin of safety.

🕰️ Long-Term Holding Guidance

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

Buy on Dips: Especially if price nears ₹1,000 or RSI cools below 55.

Monitor: Steel pricing cycles, export volumes, and policy support.

Let me know if you’d like a peer comparison with Tata Steel or JSW Steel next.

1

trendlyne.com

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www.business-standard.com

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