⚠ 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.
JPPOWER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | JPPOWER | Market Cap | 10,280 Cr. | Current Price | 15.0 ₹ | High / Low | 27.7 ₹ |
| Stock P/E | 16.6 | Book Value | 18.6 ₹ | Dividend Yield | 0.00 % | ROCE | 10.2 % |
| ROE | 6.83 % | Face Value | 10.0 ₹ | DMA 50 | 15.1 ₹ | DMA 200 | 16.8 ₹ |
| Chg in FII Hold | 0.17 % | Chg in DII Hold | -0.16 % | PAT Qtr | 4.89 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 55.6 | MACD | -0.32 | Volume | 27,50,02,042 | Avg Vol 1Wk | 10,68,26,680 |
| Low price | 12.5 ₹ | High price | 27.7 ₹ | PEG Ratio | 0.17 | Debt to equity | 0.28 |
| 52w Index | 16.3 % | Qtr Profit Var | -96.1 % | EPS | 0.91 ₹ | Industry PE | 30.0 |
📊 Core Financials
- Revenue Growth: PAT dropped sharply (₹4.89 Cr vs ₹182 Cr)
- Profit Margins: Weak with ROE at 6.83% and ROCE at 10.2%
- Debt Ratios: Debt-to-Equity at 0.28, moderate leverage
- Cash Flows: No dividend payout, reinvestment focus
- Return Metrics: Below industry averages, efficiency concerns
💹 Valuation Indicators
- P/E Ratio: 16.6 (below industry average of 30, undervalued)
- P/B Ratio: ~0.8 (Price ₹15 / Book Value ₹18.6, trading below book value)
- PEG Ratio: 0.17 (suggests undervaluation relative to growth)
- Intrinsic Value: Attractive compared to peers, but earnings volatility is a concern
🏢 Business Model & Competitive Advantage
- Operates in power generation and infrastructure
- Competitive advantage lies in established assets and group backing
- Profitability pressures weaken sustainability despite scale
📈 Entry Zone Recommendation
- Current Price: ₹15.0
- Support Zone: ₹12.5 – ₹14.0 (near 52-week low, RSI at 55.6 indicates neutral momentum)
- Long-term Holding: Risky due to weak profitability; suitable only for speculative investors
✅ Positive
- Stock trading below book value
- Low P/E ratio compared to industry average
- FII holdings increased (+0.17%), showing some foreign investor confidence
⚠️ Limitation
- ROE and ROCE are weak compared to peers
- No dividend yield reduces immediate investor returns
- Quarterly PAT collapsed, showing earnings instability
📉 Company Negative News
- Quarterly PAT fell drastically (₹4.89 Cr vs ₹182 Cr)
- DII holdings decreased (-0.16%), showing reduced domestic confidence
- Technical indicators (MACD negative, trading below DMA 200) reflect weak momentum
📈 Company Positive News
- FII holdings increased slightly (+0.17%)
- PEG ratio indicates undervaluation relative to growth potential
🌐 Industry
- Power sector benefits from infrastructure demand and government initiatives
- Industry P/E at 30 highlights JPPOWER trading at a discount
🔎 Conclusion
JPPOWER shows deep undervaluation with low P/E and trading below book value, but earnings volatility and weak profitability metrics limit upside. Entry around ₹12.5–₹14.0 may provide a speculative opportunity. Long-term holding requires caution until earnings stabilize and return ratios improve.