JSL - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 4.4

📊 Core Financials & Profitability

Profitability: Quarterly PAT of ₹642 Cr, slightly down from ₹798 Cr, but still strong. EPS of ₹33.7 is solid for a ₹762 stock.

Return Metrics

ROE: 17.3% and ROCE: 19.9% — excellent, indicating strong capital efficiency.

Debt Profile: Debt-to-equity at 0.27 — very healthy, showing prudent financial management.

Dividend Yield: 0.39% — modest, but consistent with reinvestment strategy.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 23.7 Fairly valued vs. industry PE of 23.1.

P/B Ratio ~3.87 Slightly expensive relative to book value ₹197.

PEG Ratio -9.75 Negative PEG suggests earnings contraction or unreliable growth forecast.

🔍 Conclusion: Valuation is reasonable given strong fundamentals, though PEG signals caution on growth expectations.

🏭 Business Model & Competitive Edge

Core Operations: Jindal Stainless Ltd (JSL) is India’s largest stainless steel manufacturer, serving automotive, railways, infrastructure, and consumer goods sectors.

Competitive Advantage

Integrated operations from melting to finishing.

Strong export footprint and domestic leadership.

Growth Outlook

Delivered 1,515% returns over 5 years

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Forecasted to reach ₹1,056 by December 2025 under favorable conditions

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Technical momentum remains bullish with price above both 25-day and 50-day moving averages

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📉 Technicals & Entry Zone

RSI: 54.3 — neutral, no strong momentum.

MACD: 7.31 — bullish signal.

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

📌 Suggested Entry Zone: ₹730–₹750 — near 50-DMA, offering a balanced entry point.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, leadership position, and technical strength support long-term value.

Buy on Dips: Especially if price nears ₹730 or RSI dips below 50.

Monitor: Stainless steel demand, export volumes, and margin trends.

You can explore JSL’s 2025 price targets and technical outlook or long-term forecast up to 2030 for deeper insights. Let me know if you'd like a peer comparison with Tata Steel or Ratnamani Metals next.

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