JSWINFRA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | JSWINFRA | Market Cap | 57,708 Cr. | Current Price | 275 ₹ | High / Low | 349 ₹ |
| Stock P/E | 339 | Book Value | 24.6 ₹ | Dividend Yield | 0.29 % | ROCE | 8.79 % |
| ROE | 3.30 % | Face Value | 2.00 ₹ | DMA 50 | 268 ₹ | DMA 200 | 276 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.26 % | PAT Qtr | -55.8 Cr. | PAT Prev Qtr | 33.7 Cr. |
| RSI | 46.2 | MACD | -0.05 | Volume | 15,64,946 | Avg Vol 1Wk | 13,88,713 |
| Low price | 233 ₹ | High price | 349 ₹ | PEG Ratio | 9.64 | Debt to equity | 0.88 |
| 52w Index | 35.8 % | Qtr Profit Var | -166 % | EPS | 0.80 ₹ | Industry PE | 24.4 |
📊 Core Financials: JSW Infrastructure (JSWINFRA) shows weak fundamentals. ROCE at 8.79% and ROE at 3.30% reflect low capital efficiency. Debt-to-equity ratio of 0.88 indicates moderate leverage. Quarterly PAT of -₹55.8 Cr. declined sharply from ₹33.7 Cr., showing losses and volatility. EPS of ₹0.80 is very low, limiting earnings strength.
💰 Valuation Indicators: Current P/E of 339 is extremely high compared to the industry average of 24.4, suggesting severe overvaluation. P/B ratio of ~11.2 (275/24.6) reflects premium pricing. PEG ratio of 9.64 indicates growth is very expensive. Dividend yield of 0.29% provides negligible income return. Intrinsic value appears much lower than current price, requiring caution.
🏢 Business Model & Competitive Advantage: JSW Infrastructure operates in port and logistics infrastructure, backed by the JSW Group. Its competitive advantage lies in scale, group synergies, and India’s growing trade and logistics demand. However, profitability remains inconsistent, and valuations are stretched.
📈 Entry Zone: RSI at 46.2 suggests neutral momentum, while MACD near zero indicates consolidation. Current price of ₹275 is close to DMA levels (50 DMA: ₹268, 200 DMA: ₹276). Entry between ₹250–₹265 may be favorable for investors with high risk tolerance.
⏳ Long-Term Holding Guidance: JSW Infrastructure benefits from industry demand and group backing but faces challenges from weak profitability and extreme valuations. Suitable only for aggressive investors willing to accept high risk for potential long-term growth.
Positive
- 🌟 Backing of JSW Group strengthens brand and scale
- 🌟 Increase in DII holding (+0.26%)
- 🌟 Strong industry demand for logistics and port infrastructure
Limitation
- ⚠️ Extremely high P/E (339) compared to industry average (24.4)
- ⚠️ PEG ratio of 9.64 indicates expensive growth
- ⚠️ Low ROE (3.30%) and ROCE (8.79%)
- ⚠️ Dividend yield of 0.29% is negligible
Company Negative News
- 📉 Quarterly loss of -₹55.8 Cr.
- 📉 Decline in FII holding (-0.21%)
Company Positive News
- 📈 Increase in DII holding (+0.26%)
- 📈 Strong 52-week performance (+35.8%)
Industry
- 🌐 Infrastructure and logistics sector driven by trade growth
- 🌐 Industry P/E at 24.4 reflects moderate valuation
- 🌐 Competition from peers like Adani Ports and GMR Infrastructure
Conclusion
✅ JSW Infrastructure shows industry potential but suffers from weak profitability and extreme valuations. Entry between ₹250–₹265 is suitable only for aggressive investors. Long-term holding requires caution, as fundamentals are weak and valuations are stretched compared to peers.
Would you like me to also compare JSW Infrastructure with peers like Adani Ports, GMR Infrastructure, or Container Corporation to highlight sector positioning?