⚠ 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.
JSWINFRA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | JSWINFRA | Market Cap | 54,527 Cr. | Current Price | 260 ₹ | High / Low | 349 ₹ |
| Stock P/E | 176 | Book Value | 24.7 ₹ | Dividend Yield | 0.31 % | ROCE | 9.32 % |
| ROE | 6.93 % | Face Value | 2.00 ₹ | DMA 50 | 262 ₹ | DMA 200 | 280 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | -0.37 % | PAT Qtr | 33.7 Cr. | PAT Prev Qtr | 119 Cr. |
| RSI | 51.2 | MACD | -1.49 | Volume | 29,80,840 | Avg Vol 1Wk | 16,15,127 |
| Low price | 243 ₹ | High price | 349 ₹ | PEG Ratio | 5.01 | Debt to equity | 0.71 |
| 52w Index | 15.8 % | Qtr Profit Var | -63.8 % | EPS | 1.47 ₹ | Industry PE | 21.7 |
📊 Core Financials
- Revenue Growth: PAT dropped sharply (₹33.7 Cr vs ₹119 Cr)
- Profit Margins: Weak with ROE at 6.93% and ROCE at 9.32%
- Debt Ratios: Debt-to-Equity at 0.71, moderate leverage
- Cash Flows: Dividend yield of 0.31% is minimal
- Return Metrics: Efficiency below industry peers
💹 Valuation Indicators
- P/E Ratio: 176 (far above industry average of 21.7, highly overvalued)
- P/B Ratio: ~10.5 (Price ₹260 / Book Value ₹24.7)
- PEG Ratio: 5.01 (high, suggests growth premium priced in)
- Intrinsic Value: Appears stretched given weak profitability
🏢 Business Model & Competitive Advantage
- Operates in infrastructure development under JSW Group
- Competitive advantage lies in group backing and scale
- Weak profitability metrics limit sustainability despite strong brand
📈 Entry Zone Recommendation
- Current Price: ₹260
- Support Zone: ₹243 – ₹255 (near 52-week low, RSI at 51.2 indicates neutral momentum)
- Long-term Holding: Risky due to high valuation and weak returns; suitable only for aggressive investors betting on infrastructure expansion
✅ Positive
- Part of JSW Group, strong brand and backing
- DII holdings increased (+0.22%), showing domestic investor support
- Stable technicals with RSI neutral and MACD near flat
⚠️ Limitation
- ROE and ROCE are weak compared to peers
- P/E ratio significantly above industry average
- Dividend yield is negligible
📉 Company Negative News
- Quarterly PAT fell sharply (₹33.7 Cr vs ₹119 Cr)
- FII holdings decreased (-0.17%), showing reduced foreign investor confidence
📈 Company Positive News
- Group backing provides stability and long-term opportunities
- DII holdings increased, reflecting domestic institutional confidence
🌐 Industry
- Infrastructure sector benefits from government spending and urbanization
- Industry P/E at 21.7 highlights JSWINFRA trading at a steep premium
🔎 Conclusion
JSWINFRA shows potential through group backing and infrastructure demand but faces challenges with weak profitability and stretched valuations. Entry around ₹243–₹255 may provide a safer margin for speculative investors. Long-term holding requires caution until earnings stabilize and returns improve, though infrastructure expansion offers strategic growth opportunities.