JSWHL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.4
| Stock Code | JSWHL | Market Cap | 19,758 Cr. | Current Price | 17,886 ₹ | High / Low | 27,760 ₹ |
| Stock P/E | 168 | Book Value | 29,286 ₹ | Dividend Yield | 0.00 % | ROCE | 0.85 % |
| ROE | 0.64 % | Face Value | 10.0 ₹ | DMA 50 | 19,184 ₹ | DMA 200 | 18,676 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.05 % | PAT Qtr | 59.6 Cr. | PAT Prev Qtr | 19.7 Cr. |
| RSI | 37.4 | MACD | -452 | Volume | 31,457 | Avg Vol 1Wk | 10,068 |
| Low price | 14,200 ₹ | High price | 27,760 ₹ | PEG Ratio | 18.5 | Debt to equity | 0.00 |
| 52w Index | 27.2 % | Qtr Profit Var | -49.6 % | EPS | 106 ₹ | Industry PE | 30.6 |
📊 Core Financials: JSW Holdings has weak fundamentals with quarterly PAT at ₹59.6 Cr compared to ₹19.7 Cr previously, but YoY profit variation is -49.6%, showing significant earnings pressure. ROE at 0.64% and ROCE at 0.85% are extremely low, reflecting poor efficiency. Debt-to-equity ratio of 0.00 indicates no leverage, but cash flow generation remains weak. EPS of ₹106 is modest relative to the high market price.
💹 Valuation Indicators: Current P/E of 168 is far above the industry average of 30.6, suggesting extreme overvaluation. P/B ratio (Price ₹17,886 / Book Value ₹29,286 ≈ 0.61) indicates undervaluation relative to book value, but profitability metrics do not justify the price. PEG ratio of 18.5 highlights poor growth prospects. Dividend yield of 0.00% offers no income support. Intrinsic value appears much lower than current price.
🏭 Business Model & Competitive Advantage: JSW Holdings functions primarily as an investment holding company, deriving value from its stakes in group businesses. Its competitive advantage lies in backing from the JSW Group. However, limited direct operations, weak profitability, and reliance on group performance reduce resilience.
📈 Entry Zone Recommendation: With DMA 50 at ₹19,184 and DMA 200 at ₹18,676, the stock is trading below averages, reflecting weakness. RSI at 37.4 suggests oversold conditions. A safer entry zone would be closer to ₹15,000–₹16,000, near its 52-week low of ₹14,200. Long-term holding is only advisable for investors seeking exposure to JSW Group rather than standalone fundamentals.
Positive
- 📌 Backing of JSW Group provides stability
- 📌 Debt-to-equity ratio of 0.00 indicates no leverage risk
- 📌 EPS of ₹106 shows some earnings capacity
- 📌 FII holdings increased slightly (+0.03%)
Limitation
- ⚠️ Extremely high P/E of 168 vs industry 30.6
- ⚠️ Very weak ROE (0.64%) and ROCE (0.85%)
- ⚠️ PEG ratio of 18.5 indicates poor growth prospects
- ⚠️ No dividend yield, unattractive for income investors
Company Negative News
- 📉 Quarterly profit variation of -49.6% YoY
- 📉 MACD at -452 indicates strong bearish momentum
- 📉 DII holdings decreased by 0.05%
Company Positive News
- 📈 Sequential PAT growth from ₹19.7 Cr to ₹59.6 Cr
- 📈 RSI at 37.4 suggests potential rebound from oversold levels
Industry
- 🏢 Industry PE at 30.6, much lower than JSW Holdings’ valuation
- 🏢 Investment holding companies depend on performance of group businesses
- 🏢 Sector faces challenges of limited direct earnings visibility
Conclusion
🔎 JSW Holdings is fundamentally weak with poor profitability and extreme overvaluation. While group backing provides stability, standalone fundamentals are unattractive. Investors may consider entry closer to ₹15,000–₹16,000 for better value. Long-term holding is only justified for those seeking indirect exposure to JSW Group businesses rather than standalone performance.