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JSWHL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 2.9
📊 Financial Overview
- Profitability: PAT rose slightly from ₹19.1 Cr to ₹19.7 Cr QoQ, but overall growth remains modest.
- Return Metrics: ROE at 0.64% and ROCE at 0.85% are extremely low, indicating poor capital efficiency.
- Valuation: P/E of 103 is more than 3× the industry average (31.6), suggesting severe overvaluation.
- P/B Ratio: With a book value of ₹27,435 and price of ₹16,343, P/B is ~0.6, implying undervaluation on asset basis.
- PEG Ratio: 11.3 reflects poor growth-adjusted valuation.
- Debt Profile: Debt-to-equity ratio of 0.00 shows excellent financial discipline and zero leverage.
- Momentum: RSI at 46.1 and MACD at -196 suggest weak sentiment and potential downside pressure.
🏢 Business Model & Competitive Edge
- JSW Holdings functions as an investment arm of the JSW Group, holding stakes in group companies.
- Its value is largely derived from the performance of underlying JSW entities like JSW Steel and JSW Energy.
- Zero debt and strong asset base provide long-term stability, but lack of operational business limits growth.
💡 Entry Zone Recommendation
- Current price is below both DMA 50 (₹17,732) and DMA 200 (₹18,274), indicating bearish trend.
- Suggested Entry Zone: ₹15,000–₹16,000 for deep value investors.
- Long-term holding only advisable if underlying JSW group companies outperform.
✅ Positive
- Zero debt enhances financial safety and flexibility.
- Stable PAT with slight QoQ improvement.
- Strong book value offers asset-based valuation support.
⚠️ Limitation
- Extremely low ROE and ROCE indicate poor return on capital.
- High P/E and PEG ratios suggest overvaluation despite weak growth.
- Low trading volume and weak momentum indicators.
📉 Company Negative News
- Stock has corrected ~41% from its 52-week high of ₹27,760.
- MACD and RSI indicate lack of investor interest and weak technicals.
📈 Company Positive News
- FII holdings increased slightly (+0.03%), showing marginal foreign interest.
- Stable earnings and zero debt profile support long-term resilience.
🏭 Industry
- Holding companies are typically valued based on their underlying assets rather than earnings.
- Industry P/E of 31.6 highlights JSWHL’s stretched valuation.
🧾 Conclusion
- JSW Holdings is a low-risk, asset-backed investment with limited growth potential.
- Entry near ₹15,000–₹16,000 may suit value investors focused on JSW Group exposure.
- Monitor group company performance and valuation trends for long-term decisions.
Sources
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