JSWINFRA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.5
| Stock Code | JSWINFRA | Market Cap | 54,306 Cr. | Current Price | 259 ₹ | High / Low | 349 ₹ |
| Stock P/E | 175 | Book Value | 24.7 ₹ | Dividend Yield | 0.31 % | ROCE | 9.32 % |
| ROE | 6.93 % | Face Value | 2.00 ₹ | DMA 50 | 273 ₹ | DMA 200 | 288 ₹ |
| Chg in FII Hold | -0.17 % | Chg in DII Hold | -0.37 % | PAT Qtr | 33.7 Cr. | PAT Prev Qtr | 119 Cr. |
| RSI | 38.8 | MACD | -4.73 | Volume | 9,00,811 | Avg Vol 1Wk | 12,95,656 |
| Low price | 218 ₹ | High price | 349 ₹ | PEG Ratio | 4.99 | Debt to equity | 0.71 |
| 52w Index | 31.0 % | Qtr Profit Var | -63.8 % | EPS | 1.47 ₹ | Industry PE | 23.2 |
📊 Financials: JSWINFRA reflects weak fundamentals with ROCE at 9.32% and ROE at 6.93%, indicating low capital efficiency. Debt-to-equity ratio of 0.71 shows moderate leverage. Quarterly PAT fell sharply from 119 Cr. to 33.7 Cr., with a negative profit variation of -63.8%, highlighting earnings volatility. EPS of 1.47 ₹ is very low relative to market cap, limiting shareholder value creation. Cash flows are likely strained due to declining profitability.
💹 Valuation: Current P/E of 175 is extremely high compared to the industry average of 23.2, suggesting severe overvaluation. P/B ratio is ~10.5 (Current Price / Book Value), which is steep. PEG ratio of 4.99 indicates poor growth prospects relative to valuation. Intrinsic value appears much lower than CMP, offering little margin of safety.
🏢 Business Model & Competitive Advantage: The company operates in the infrastructure sector, benefiting from government-backed projects and long-term demand. While scale and brand presence provide resilience, weak return ratios, declining profits, and stretched valuations reduce its competitive edge compared to peers with stronger fundamentals.
🎯 Entry Zone Recommendation: Current price of 259 ₹ is near its 52-week low of 218 ₹, reflecting weakness. A more attractive entry zone would be around 200–220 ₹, offering better risk-reward. Long-term investors should be cautious and accumulate only on significant corrections, given stretched valuations and poor profitability trends.
Positive
- Strong brand presence in the infrastructure sector.
- Dividend yield of 0.31% provides minor shareholder return.
- Moderate debt-to-equity ratio (0.71) compared to highly leveraged peers.
Limitation
- Extremely high P/E of 175 compared to industry average (23.2).
- Weak ROCE (9.32%) and ROE (6.93%) indicate poor efficiency.
- Quarterly PAT decline from 119 Cr. to 33.7 Cr. (-63.8%).
- EPS of 1.47 ₹ is very low relative to market cap.
Company Negative News
- Sharp decline in quarterly profits raises sustainability concerns.
- FII holdings decreased by 0.17% and DII holdings by 0.37%, reflecting reduced institutional confidence.
Company Positive News
- Exposure to government-backed infrastructure projects provides long-term demand visibility.
- Stable dividend payout, though modest.
Industry
- Infrastructure industry P/E at 23.2 reflects moderate valuations.
- Sector growth driven by government spending on roads, housing, and public works.
- Long-term demand supported by urbanization and economic expansion.
Conclusion
⚖️ JSWINFRA is fundamentally weak with low return ratios, declining profits, and stretched valuations. Despite infrastructure demand and government support, the stock trades at unsustainable multiples. Investors should avoid fresh entry at current levels and consider accumulation only near 200–220 ₹ for better margin of safety. Long-term holding carries risk unless profitability improves significantly and valuations normalize.
Would you like me to also compare JSWINFRA with other listed infrastructure peers so you can see relative strengths and weaknesses?