JSL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Here’s your guided tour of Jindal Stainless Ltd (JSL) — a modern metallurgical powerhouse with strong financial footing and industrial relevance 🏗️🔍

💰 Core Financials Evaluation

Profitability

ROE: 16.1% — quite healthy, indicating good shareholder returns.

ROCE: 18.2% — strong operational efficiency, speaks well of capital usage.

Earnings Power

EPS: ₹30.4 — substantial at the current price point.

PAT Qtr: ₹595 Cr. vs Prev Qtr: ₹654 Cr. — dip is modest; 18.6% YoY growth is encouraging.

Debt Position

Debt-to-equity: 0.38 — low and stable, good sign in a capex-heavy industry.

Dividend Yield: 0.44% — modest, not the central attraction but signals stability.

📉 Valuation Metrics & Interpretation

Metric Value Remarks

P/E Ratio 22.3 Fairly priced, almost at industry average (22.4)

P/B Ratio ~3.34 Price significantly above book — market pricing growth

PEG Ratio -3.36 🟡 Negative PEG usually means unstable or declining growth estimates

📌 Valuation Summary: The stock isn’t cheap — but it isn’t irrationally expensive either. It trades close to industry multiples and reflects confidence in its growth story.

🧠 Business Model & Competitive Edge

Leading manufacturer of stainless steel in India with diverse applications — auto, railways, infrastructure, and consumer goods.

Strong push into sustainable steel and green initiatives bolsters long-term viability.

Benefits from rising domestic demand and import substitution.

Low debt + rising profit combo gives it a competitive edge.

Minor dip in FII holdings (-0.11%) suggests short-term caution; small uptick in DII (+0.18%) shows quiet domestic confidence.

📍 Technical Insight & Entry Zone

Current Price: ₹678

Sitting near DMA-50 (₹670) and DMA-200 (₹657) — signs of base formation.

RSI at 50 — neutral, not overbought or oversold.

MACD -2.83 — bearish momentum, wait for signs of reversal.

📌 Suggested Entry Range

₹650–₹675 appears attractive, with strong support near ₹640.

Watch for MACD crossover and RSI uptick above 55 to confirm momentum.

🕰️ Long-Term Holding Perspective

Solid fundamentals, strong industry placement, and improving demand trends.

Ideal candidate for 3–5 year holding as India continues its infrastructure and manufacturing push.

Monitor quarterly earnings trajectory and global commodity cycles.

Would you like a comparison with other metal majors like Tata Steel, Ratnamani Metals, or even JSW Steel for strategic layering? Let’s build something smart together 🧱📈.

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