⚠ 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.
JWL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | JWL | Market Cap | 11,571 Cr. | Current Price | 271 ₹ | High / Low | 457 ₹ |
| Stock P/E | 48.0 | Book Value | 65.4 ₹ | Dividend Yield | 0.37 % | ROCE | 21.5 % |
| ROE | 17.0 % | Face Value | 10.0 ₹ | DMA 50 | 289 ₹ | DMA 200 | 324 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | -0.28 % | PAT Qtr | 58.3 Cr. | PAT Prev Qtr | 52.7 Cr. |
| RSI | 44.9 | MACD | -7.95 | Volume | 1,74,19,659 | Avg Vol 1Wk | 51,27,188 |
| Low price | 237 ₹ | High price | 457 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.21 |
| 52w Index | 15.4 % | Qtr Profit Var | -40.4 % | EPS | 5.67 ₹ | Industry PE | 47.9 |
📊 Core Financials
- Revenue & Profitability: PAT grew sequentially (₹52.7 Cr → ₹58.3 Cr), but YoY variation is -40.4%, showing inconsistency.
- Margins: ROCE at 21.5% and ROE at 17% highlight strong profitability and efficient capital use.
- Debt: Debt-to-equity ratio of 0.21 indicates low leverage and financial stability.
- Cash Flow: Earnings remain stable, though quarterly swings need monitoring.
💹 Valuation Indicators
- P/E: 48.0, nearly aligned with industry average (47.9), suggesting fair valuation.
- P/B: 4.14 (₹271 / ₹65.4), showing premium pricing relative to book value.
- PEG Ratio: 0.50, attractive as growth is undervalued compared to earnings.
- Intrinsic Value: Current price ₹271 is near fair value; better entry closer to ₹237–250.
🏢 Business Model & Competitive Advantage
- Strong brand positioning with consistent demand drivers.
- High ROCE reflects efficient capital allocation.
- Low debt enhances resilience against market downturns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹237–250 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking steady compounding with moderate volatility.
✅ Positive
- Strong ROCE (21.5%) and ROE (17%) show efficient capital use.
- Low debt-to-equity ratio ensures balance sheet strength.
- PEG ratio of 0.50 indicates undervaluation relative to growth.
⚠️ Limitation
- High P/B ratio reflects premium valuation.
- Quarterly profit variation (-40.4%) raises concerns about earnings stability.
- Stock trading below DMA 50 (₹289) and DMA 200 (₹324), showing weak momentum.
📉 Company Negative News
- Yearly profit decline despite sequential growth.
- Technical indicators (RSI 44.9, MACD -7.95) suggest short-term weakness.
- DII holdings decreased by 0.28%, showing reduced domestic institutional confidence.
📈 Company Positive News
- Sequential PAT growth from ₹52.7 Cr to ₹58.3 Cr.
- FII holdings increased by 0.06%, reflecting foreign investor interest.
- Strong trading volume (1.74 Cr) compared to weekly average (51 lakh), indicating active participation.
🏭 Industry
- Industry P/E at 47.9, nearly aligned with company’s valuation.
- Sector growth remains steady with moderate demand outlook.
🔎 Conclusion
- JWL shows strong fundamentals with efficient capital use and low debt.
- Valuation is slightly premium but justified by growth prospects.
- Best entry zone lies between ₹237–250 for long-term investors.
- Overall, a healthy company for compounding returns, though quarterly volatility and momentum weakness warrant caution.