JSWCEMENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | JSWCEMENT | Market Cap | 16,697 Cr. | Current Price | 122 ₹ | High / Low | 162 ₹ |
| Stock P/E | 42.2 | Book Value | 48.3 ₹ | Dividend Yield | 0.00 % | ROCE | 7.16 % |
| ROE | 3.38 % | Face Value | 10.0 ₹ | DMA 50 | 122 ₹ | DMA 200 | 128 ₹ |
| Chg in FII Hold | -0.10 % | Chg in DII Hold | 0.65 % | PAT Qtr | 171 Cr. | PAT Prev Qtr | 95.9 Cr. |
| RSI | 48.4 | MACD | 1.15 | Volume | 8,28,330 | Avg Vol 1Wk | 10,01,655 |
| Low price | 107 ₹ | High price | 162 ₹ | PEG Ratio | -1.24 | Debt to equity | 0.56 |
| 52w Index | 28.5 % | Qtr Profit Var | 6,400 % | EPS | -10.6 ₹ | Industry PE | 30.8 |
Financials: JSW Cement shows weak fundamentals with ROCE at 7.16% and ROE at 3.38%. EPS is negative (-₹10.6), reflecting poor profitability despite quarterly PAT rising to ₹171 Cr. from ₹95.9 Cr. Debt-to-equity ratio of 0.56 indicates moderate leverage.
Valuation: P/E of 42.2 is significantly above industry average (30.8), suggesting overvaluation. PEG ratio of -1.24 highlights poor growth-adjusted valuation. Dividend yield is nil, reducing investor appeal.
Business Model: JSW Cement operates in the cement sector, benefiting from infrastructure demand. Competitive advantage lies in brand presence, but weak profitability undermines fundamentals.
Entry Zone: Reasonable entry between ₹115–₹125 near DMA 50 (₹122). Long-term holding requires caution due to weak fundamentals and overvaluation.
Positive
- PAT surged from ₹95.9 Cr. to ₹171 Cr.
- Domestic institutional inflows (+0.65%) show confidence
- Technical indicators (RSI 48.4, MACD 1.15) suggest mild support
- Cement sector demand supported by infrastructure growth
Limitation
- Negative EPS (-₹10.6) reflects poor profitability
- ROE (3.38%) and ROCE (7.16%) are weak compared to peers
- High P/E (42.2) vs industry average (30.8) indicates overvaluation
- Dividend yield of 0.00% offers no income support
Company Negative News
- Weak fundamentals with negative EPS and modest return ratios
- Decline in foreign institutional holdings (-0.10%)
- Overvaluation compared to industry peers
Company Positive News
- Strong PAT growth quarter-on-quarter (+6,400% variation)
- Domestic institutional inflows (+0.65%) add confidence
- Technical support near DMA levels
Industry
- Cement sector outlook remains positive with infrastructure demand
- Industry P/E at 30.8 highlights JSW Cement trading at premium valuation
Conclusion
JSW Cement presents weak fundamentals with negative EPS, modest ROE/ROCE, and stretched valuations. While short-term PAT growth and domestic inflows provide support, long-term investors should be cautious. Entry around ₹115–₹125 offers limited conviction, with profitability recovery and valuation normalization essential for sustainable holding.
Would you like me to also prepare a peer benchmarking overlay comparing JSW Cement against Ultratech, Shree Cement, and ACC, so you can evaluate relative valuation and efficiency in a modular HTML format?