JSWINFRA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | JSWINFRA | Market Cap | 57,116 Cr. | Current Price | 272 ₹ | High / Low | 349 ₹ |
| Stock P/E | 184 | Book Value | 24.7 ₹ | Dividend Yield | 0.29 % | ROCE | 9.32 % |
| ROE | 6.93 % | Face Value | 2.00 ₹ | DMA 50 | 264 ₹ | DMA 200 | 276 ₹ |
| Chg in FII Hold | -0.21 % | Chg in DII Hold | 0.26 % | PAT Qtr | 33.7 Cr. | PAT Prev Qtr | 119 Cr. |
| RSI | 53.7 | MACD | 6.24 | Volume | 21,78,958 | Avg Vol 1Wk | 19,13,495 |
| Low price | 233 ₹ | High price | 349 ₹ | PEG Ratio | 5.25 | Debt to equity | 0.71 |
| 52w Index | 33.4 % | Qtr Profit Var | -63.8 % | EPS | 1.47 ₹ | Industry PE | 24.6 |
Financials: JSW Infrastructure shows weak fundamentals with ROCE at 9.32% and ROE at 6.93%. EPS of ₹1.47 is modest, while quarterly PAT dropped sharply to ₹33.7 Cr. from ₹119 Cr. Debt-to-equity ratio of 0.71 indicates moderate leverage risk.
Valuation: P/E of 184 is extremely high compared to industry average (24.6), suggesting severe overvaluation. PEG ratio of 5.25 highlights poor growth-adjusted valuation. Dividend yield of 0.29% offers minimal income support.
Business Model: JSW Infrastructure operates in port and logistics infrastructure, benefiting from trade growth and industrial expansion. Competitive advantage lies in scale and integration, but profitability remains weak.
Entry Zone: Reasonable entry between ₹260–₹270 near DMA 50 (₹264) and DMA 200 (₹276). Long-term holding requires caution due to weak fundamentals and stretched valuations.
Positive
- Strong 52-week index gain (+33.4%) highlights price momentum
- Trading near DMA support levels (₹264–₹276)
- Domestic institutional inflows (+0.26%) show confidence
- Sector demand supported by infrastructure growth
Limitation
- ROE (6.93%) and ROCE (9.32%) are weak compared to peers
- EPS of ₹1.47 reflects poor profitability
- P/E of 184 vs industry average (24.6) indicates extreme overvaluation
- PEG ratio of 5.25 signals poor growth-adjusted valuation
- Quarterly PAT decline (-63.8%) raises earnings concerns
Company Negative News
- Sharp drop in profitability (₹119 Cr. → ₹33.7 Cr.)
- Foreign institutional holdings decreased (-0.21%)
- Earnings volatility undermines investor confidence
Company Positive News
- Technical indicators (RSI 53.7, MACD 6.24) show neutral-to-positive momentum
- Domestic institutional inflows (+0.26%) add support
Industry
- Infrastructure and logistics sector outlook remains positive with trade expansion
- Industry P/E at 24.6 highlights JSW Infrastructure trading at a steep premium
Conclusion
JSW Infrastructure demonstrates strong sector positioning but suffers from weak fundamentals, extreme valuation multiples, and declining profitability. Entry around ₹260–₹270 offers a cautious opportunity for momentum-driven investors. Long-term holding requires significant improvement in earnings and return metrics to justify valuations.
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