JINDALSTEL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | JINDALSTEL | Market Cap | 1,24,767 Cr. | Current Price | 1,223 ₹ | High / Low | 1,306 ₹ |
| Stock P/E | 28.3 | Book Value | 515 ₹ | Dividend Yield | 0.16 % | ROCE | 11.7 % |
| ROE | 9.37 % | Face Value | 1.00 ₹ | DMA 50 | 1,195 ₹ | DMA 200 | 1,091 ₹ |
| Chg in FII Hold | 0.17 % | Chg in DII Hold | 0.04 % | PAT Qtr | 710 Cr. | PAT Prev Qtr | 921 Cr. |
| RSI | 50.5 | MACD | 21.1 | Volume | 9,14,095 | Avg Vol 1Wk | 10,34,334 |
| Low price | 833 ₹ | High price | 1,306 ₹ | PEG Ratio | -1.46 | Debt to equity | 0.13 |
| 52w Index | 82.5 % | Qtr Profit Var | -39.0 % | EPS | 32.6 ₹ | Industry PE | 22.9 |
Financials: Jindal Steel & Power (JINDALSTEL) shows moderate fundamentals with ROCE at 11.7% and ROE at 9.37%. EPS of ₹32.6 supports profitability, but quarterly PAT declined to ₹710 Cr. from ₹921 Cr. Debt-to-equity ratio of 0.13 reflects strong balance sheet stability.
Valuation: P/E of 28.3 is above industry average (22.9), suggesting premium valuation. PEG ratio of -1.46 highlights weak growth-adjusted valuation. Dividend yield of 0.16% offers minimal income support.
Business Model: Jindal Steel operates in steel and power with strengths in integrated operations and scale. Competitive advantage lies in diversified product lines and infrastructure demand, though profitability remains volatile.
Entry Zone: Reasonable entry between ₹1,180–₹1,220 near DMA 50 (₹1,195). Long-term holding requires monitoring earnings recovery and valuation compression.
Positive
- EPS of ₹32.6 supports valuation strength
- Debt-to-equity ratio of 0.13 reflects financial stability
- Strong 52-week index gain (+82.5%) highlights price momentum
- Technical indicators (MACD 21.1) show bullish bias
- Institutional inflows (FII +0.17%, DII +0.04%) add confidence
Limitation
- ROE (9.37%) and ROCE (11.7%) are modest compared to peers
- High P/E (28.3) vs industry average (22.9) indicates overvaluation
- Negative PEG ratio (-1.46) signals weak growth-adjusted valuation
- Dividend yield of 0.16% offers limited income appeal
- Quarterly PAT declined (-39%)
Company Negative News
- Profit decline from ₹921 Cr. to ₹710 Cr.
- Valuation stretched relative to industry peers
- Earnings volatility raises investor caution
Company Positive News
- Technical indicators (RSI 50.5, MACD 21.1) support bullish momentum
- Institutional inflows show investor confidence
Industry
- Steel sector benefits from infrastructure and construction demand
- Industry P/E at 22.9 highlights Jindal Steel trading at premium valuation
Conclusion
Jindal Steel & Power presents moderate fundamentals with strong sector positioning but suffers from stretched valuations, modest return ratios, and declining profitability. Entry around ₹1,180–₹1,220 offers a cautious opportunity. Long-term investors should monitor earnings recovery and valuation normalization before committing to sustained holding.
Would you like me to extend this into a peer benchmarking overlay comparing Jindal Steel against JSW Steel, Tata Steel, and SAIL, so you can evaluate relative valuation and efficiency in a modular HTML format?