⚠ 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.
JSL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | JSL | Market Cap | 60,244 Cr. | Current Price | 731 ₹ | High / Low | 884 ₹ |
| Stock P/E | 21.8 | Book Value | 210 ₹ | Dividend Yield | 0.41 % | ROCE | 19.9 % |
| ROE | 17.3 % | Face Value | 2.00 ₹ | DMA 50 | 767 ₹ | DMA 200 | 749 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | 0.15 % | PAT Qtr | 685 Cr. | PAT Prev Qtr | 644 Cr. |
| RSI | 45.2 | MACD | -16.0 | Volume | 6,03,821 | Avg Vol 1Wk | 9,37,804 |
| Low price | 497 ₹ | High price | 884 ₹ | PEG Ratio | -8.95 | Debt to equity | 0.26 |
| 52w Index | 60.5 % | Qtr Profit Var | 10.7 % | EPS | 34.9 ₹ | Industry PE | 20.1 |
📊 Core Financials
- Revenue Growth: PAT improved (₹685 Cr vs ₹644 Cr)
- Profit Margins: Strong with ROE at 17.3% and ROCE at 19.9%
- Debt Ratios: Debt-to-Equity at 0.26, low leverage
- Cash Flows: Dividend yield of 0.41% provides modest shareholder returns
- Return Metrics: Efficient capital utilization compared to peers
💹 Valuation Indicators
- P/E Ratio: 21.8 (slightly above industry average of 20.1, fairly valued)
- P/B Ratio: ~3.5 (Price ₹731 / Book Value ₹210)
- PEG Ratio: -8.95 (negative, signals weak earnings growth outlook)
- Intrinsic Value: Fairly priced, but growth concerns persist
🏢 Business Model & Competitive Advantage
- Operates in stainless steel manufacturing under Jindal Group
- Competitive advantage lies in scale, integrated operations, and strong brand presence
- Low debt and strong profitability support sustainability
📈 Entry Zone Recommendation
- Current Price: ₹731
- Support Zone: ₹700 – ₹720 (near DMA 200, RSI at 45.2 indicates weak momentum)
- Long-term Holding: Attractive for investors seeking exposure to steel, but monitor growth trajectory
✅ Positive
- Strong ROE and ROCE indicate efficient capital use
- Low debt-to-equity ratio (0.26) enhances financial stability
- Quarterly PAT growth (₹685 Cr vs ₹644 Cr)
- Institutional investor confidence (FII +0.11%, DII +0.15%)
⚠️ Limitation
- PEG ratio negative, reflecting weak growth outlook
- P/B ratio relatively high compared to peers
- Dividend yield is modest
📉 Company Negative News
- Technical indicators (MACD negative, RSI weak) suggest bearish trend
- Growth outlook remains uncertain despite profitability
📈 Company Positive News
- Quarterly PAT improved (₹685 Cr vs ₹644 Cr)
- Institutional holdings increased, reflecting investor confidence
🌐 Industry
- Steel industry benefits from infrastructure and manufacturing demand
- Industry P/E at 20.1 highlights JSL trading slightly above average
🔎 Conclusion
JSL demonstrates strong fundamentals with high ROE/ROCE, low debt, and consistent profitability. However, negative PEG ratio and high P/B valuation raise concerns about growth sustainability. Entry around ₹700–₹720 offers a safer margin. Long-term holding is suitable for investors seeking exposure to steel, but monitoring growth trajectory and valuation is essential.