⚠ 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.
JSWCEMENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | JSWCEMENT | Market Cap | 16,182 Cr. | Current Price | 119 ₹ | High / Low | 162 ₹ |
| Stock P/E | 40.9 | Book Value | 48.3 ₹ | Dividend Yield | 0.00 % | ROCE | 7.16 % |
| ROE | 3.38 % | Face Value | 10.0 ₹ | DMA 50 | 121 ₹ | DMA 200 | 130 ₹ |
| Chg in FII Hold | -1.10 % | Chg in DII Hold | 0.22 % | PAT Qtr | 171 Cr. | PAT Prev Qtr | 95.9 Cr. |
| RSI | 46.4 | MACD | -0.82 | Volume | 12,70,432 | Avg Vol 1Wk | 20,20,832 |
| Low price | 107 ₹ | High price | 162 ₹ | PEG Ratio | -1.21 | Debt to equity | 0.56 |
| 52w Index | 21.7 % | Qtr Profit Var | 6,400 % | EPS | -10.6 ₹ | Industry PE | 28.2 |
📊 Core Financials
- Revenue Growth: PAT improved significantly (₹171 Cr vs ₹95.9 Cr)
- Profit Margins: Weak with ROE at 3.38% and ROCE at 7.16%
- Debt Ratios: Debt-to-Equity at 0.56, moderate leverage
- Cash Flows: No dividend payout, reinvestment focus
- Return Metrics: Below industry averages, efficiency concerns
💹 Valuation Indicators
- P/E Ratio: 40.9 (well above industry average of 28.2, overvalued)
- P/B Ratio: ~2.5 (Price ₹119 / Book Value ₹48.3)
- PEG Ratio: -1.21 (negative, signals poor earnings growth outlook)
- Intrinsic Value: Appears stretched given weak profitability
🏢 Business Model & Competitive Advantage
- Operates in cement manufacturing, part of JSW Group
- Competitive advantage lies in brand strength and group synergies
- Profitability pressures weaken sustainability despite scale
📈 Entry Zone Recommendation
- Current Price: ₹119
- Support Zone: ₹107 – ₹115 (near 52-week low, RSI at 46.4 indicates neutral momentum)
- Long-term Holding: Risky due to weak profitability and high valuation; suitable only for aggressive investors
✅ Positive
- Strong PAT improvement (₹171 Cr vs ₹95.9 Cr)
- Part of JSW Group, benefiting from brand and network
- DII holdings increased (+0.22%), showing domestic support
⚠️ Limitation
- ROE and ROCE are weak compared to peers
- P/E ratio significantly above industry average
- No dividend yield reduces immediate investor returns
📉 Company Negative News
- FII holdings decreased (-1.10%), showing reduced foreign investor confidence
- Technical indicators (MACD negative, trading below DMA 200) reflect weak momentum
📈 Company Positive News
- Quarterly profit variation of 6,400% YoY indicates turnaround performance
- Strong group backing provides stability
🌐 Industry
- Cement industry benefits from infrastructure and housing demand
- Industry P/E at 28.2 highlights JSWCEMENT trading at a premium
🔎 Conclusion
JSWCEMENT shows a sharp turnaround in profitability but remains weak in return ratios and overvalued compared to industry peers. Entry around ₹107–₹115 may provide a safer margin for speculative investors. Long-term holding requires caution until profitability stabilizes and valuations align with industry standards.