JSWHL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.4

📊 Financials & Profitability

Profit Growth: Quarterly PAT rose slightly from ₹19.1 Cr to ₹19.7 Cr — a modest 9.58% increase. Not a growth engine, but stable.

Return Metrics

ROE: 0.64% and ROCE: 0.85% — extremely low, indicating poor capital efficiency.

EPS: ₹159 — strong on paper, but not backed by high returns.

Debt Profile: Debt-to-equity of 0.00 — debt-free, which is a major plus for financial resilience.

Dividend Yield: 0.00% — no income generation for shareholders.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 116 Extremely high vs. industry PE of 32.0 — richly valued.

P/B Ratio ~0.67 Undervalued relative to book value ₹27,435 — suggests deep discount.

PEG Ratio 12.8 Very high — growth doesn’t justify valuation.

🔍 Conclusion: Valuation is contradictory — high P/E and PEG, but low P/B. Likely driven by holding company structure and asset value rather than earnings.

🏢 Business Model & Competitive Edge

Core Operations: JSW Holdings is a holding company, primarily investing in JSW Group entities. It doesn’t generate operational revenue like manufacturing or services firms.

Asset Play: Investors buy into JSWHL for exposure to JSW Steel, JSW Energy, and other group companies — not for earnings growth.

Recent Trends

Market cap has grown 164% YoY

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Price targets for 2025 suggest potential upside to ₹32,628 by year-end

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Financial strength rated 55/100, valuation score just 27/100 — expensive performer

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📉 Technicals & Entry Zone

RSI: 45.8 — neutral, no strong momentum.

MACD: -126 — bearish signal.

DMA Levels: Price below 50-DMA and 200-DMA — short-term weakness.

📌 Suggested Entry Zone: ₹17,000–₹18,000 — closer to support and better aligned with technical indicators.

🕰️ Long-Term Holding Guidance

Hold if Invested: Only if you're bullish on JSW Group’s long-term growth.

Buy on Dips: Prefer entry below ₹18,000 with a long horizon.

Monitor: Group company performance, NAV discount, and macro trends.

If you’d like a sum-of-the-parts valuation or comparison with other holding companies like Bajaj Holdings or Tata Investment Corp, I can build that next.

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stockanalysis.com

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dailybulls.in

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trendlyne.com

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