JSL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | JSL | Market Cap | 63,266 Cr. | Current Price | 767 ₹ | High / Low | 884 ₹ |
| Stock P/E | 22.8 | Book Value | 210 ₹ | Dividend Yield | 0.39 % | ROCE | 19.9 % |
| ROE | 17.3 % | Face Value | 2.00 ₹ | DMA 50 | 761 ₹ | DMA 200 | 750 ₹ |
| Chg in FII Hold | -0.66 % | Chg in DII Hold | -0.08 % | PAT Qtr | 685 Cr. | PAT Prev Qtr | 644 Cr. |
| RSI | 51.6 | MACD | 8.64 | Volume | 4,03,145 | Avg Vol 1Wk | 5,78,236 |
| Low price | 556 ₹ | High price | 884 ₹ | PEG Ratio | -9.40 | Debt to equity | 0.26 |
| 52w Index | 64.5 % | Qtr Profit Var | 10.7 % | EPS | 34.9 ₹ | Industry PE | 22.9 |
Financials: Jindal Stainless (JSL) demonstrates solid fundamentals with ROCE at 19.9% and ROE at 17.3%. EPS of ₹34.9 supports profitability, while quarterly PAT improved to ₹685 Cr. from ₹644 Cr. Debt-to-equity ratio of 0.26 indicates financial stability.
Valuation: P/E of 22.8 is in line with industry average (22.9), suggesting fair valuation. PEG ratio of -9.40 highlights weak growth-adjusted valuation. Dividend yield of 0.39% provides modest income support.
Business Model: JSL operates in stainless steel manufacturing with strengths in scale, product diversification, and domestic demand. Competitive advantage lies in integrated operations and efficiency.
Entry Zone: Attractive entry between ₹750–₹770 near DMA 50 (₹761) and DMA 200 (₹750). Long-term holding favorable due to strong fundamentals and sector demand.
Positive
- Strong ROCE (19.9%) and ROE (17.3%) highlight efficient capital use
- EPS of ₹34.9 supports valuation strength
- Debt-to-equity ratio of 0.26 reflects financial stability
- PAT growth (+10.7%) shows earnings momentum
Limitation
- PEG ratio of -9.40 signals weak growth-adjusted valuation
- Dividend yield of 0.39% offers limited income appeal
- RSI at 51.6 shows neutral momentum
- FII holdings reduced (-0.66%) and DII holdings (-0.08%) show cautious sentiment
Company Negative News
- Weak PEG ratio highlights growth concerns
- Decline in institutional holdings raises investor caution
Company Positive News
- Quarterly PAT improved from ₹644 Cr. to ₹685 Cr.
- Technical indicators (MACD 8.64) show bullish bias
- Strong 52-week index gain (+64.5%) highlights price momentum
Industry
- Stainless steel sector benefits from infrastructure and industrial demand
- Industry P/E at 22.9 highlights JSL trading at fair valuation
Conclusion
JSL presents strong fundamentals with efficient capital use, stable earnings, and fair valuation relative to peers. Entry around ₹750–₹770 offers a favorable risk-reward opportunity. Long-term investors can benefit from sector demand and company stability, while monitoring growth metrics and institutional flows.
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