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JSWINFRA - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 3.1
📊 Financial Overview
- Profitability: PAT rose from ₹73 Cr to ₹119 Cr QoQ, but overall profit variation is just 2.44%, indicating inconsistent growth.
- Return Metrics: ROE at 6.93% and ROCE at 9.32% are below industry standards, reflecting modest capital efficiency.
- Valuation: P/E of 165 is extremely high compared to industry average of 27.1, suggesting significant overvaluation.
- P/B Ratio: With a book value of ₹24.7 and price of ₹290, P/B is ~11.7, indicating stretched valuation.
- PEG Ratio: 4.70 signals poor growth-adjusted valuation.
- Debt Profile: Debt-to-equity ratio of 0.71 is moderate and manageable.
- Momentum: RSI at 37.1 and MACD at -5.55 suggest oversold conditions and potential for technical rebound.
🏢 Business Model & Competitive Edge
- JSW Infrastructure operates in port development and logistics, benefiting from India's growing trade and export activity.
- Strong backing from JSW Group enhances credibility and access to capital.
- Expansion into new ports and terminals supports long-term scalability.
💡 Entry Zone Recommendation
- Current price is below both DMA 50 (₹308) and DMA 200 (₹302), indicating bearish trend.
- Suggested Entry Zone: ₹270–₹285 for accumulation.
- Long-term holding viable if valuation cools and ROE/ROCE improve.
✅ Positive
- QoQ PAT growth from ₹73 Cr to ₹119 Cr shows operational improvement.
- Moderate debt levels and strong group backing.
- FII holdings increased by 0.66%, indicating rising foreign interest.
⚠️ Limitation
- Extremely high P/E and PEG ratios suggest overvaluation.
- ROE and ROCE below industry benchmarks.
- Weak momentum indicators and declining volume.
📉 Company Negative News
- Stock has corrected ~17% from its 52-week high of ₹349.
- MACD and RSI indicate bearish sentiment and lack of short-term momentum.
📈 Company Positive News
- Strong QoQ earnings growth and expansion in port capacity.
- Positive FII sentiment and strategic infrastructure investments.
🏭 Industry
- Infrastructure sector is supported by government spending and trade growth.
- Industry P/E of 27.1 highlights JSW Infra’s premium valuation.
🧾 Conclusion
- JSW Infrastructure is a promising infrastructure play with strong group support and expansion potential.
- Entry near ₹270–₹285 offers better risk-reward for long-term investors.
- Monitor valuation metrics and return ratios for sustained performance.
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