JINDALSAW - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: Jindal Saw Ltd. (JINDALSAW)

Rating: 3.6

Jindal Saw presents a mixed bag for long-term investors. While its fundamentals show strength in profitability and valuation, recent earnings volatility and weak technicals suggest caution in timing your entry or exit.

✅ Strengths

Attractive Valuation: P/E of 9.42 vs industry average of 23.8 indicates undervaluation.

Strong ROCE (19.4%) & ROE (13.7%): Reflects efficient capital usage and profitability.

Low PEG Ratio (0.16): Suggests growth is available at a reasonable price.

EPS of ₹27.2: Solid earnings base.

Debt-to-equity of 0.43: Healthy leverage for a capital-intensive business.

Book Value ₹178 vs CMP ₹217: Reasonable premium for a profitable company.

❌ Concerns

Quarterly PAT Drop: –81.9% is a sharp decline, possibly due to one-off factors or margin pressure.

Negative MACD & RSI at 35.4: Bearish momentum; stock may continue to drift lower.

FII Holding Decline (–1.87%): Indicates reduced foreign institutional confidence.

Trading Below DMA-50 & DMA-200: Weak technical trend.

🎯 Ideal Entry Price Zone

₹190–₹205 This range aligns with technical support and offers a margin of safety below recent lows and near book value.

📈 Strategy for Existing Holders

🕒 Holding Period

2–4 years, provided ROCE stays above 15% and PEG remains below 0.5.

Monitor quarterly earnings for recovery and margin stability.

✂️ Exit Strategy

Partial exit near ₹275–₹300, if RSI crosses 60 and MACD turns positive.

Full exit if

ROCE drops below 10%

PEG rises above 1.0

PAT continues to decline for 2+ quarters

Dividend yield falls below 0.5%

Would you like to explore how Jindal Saw compares with peers like Welspun Corp or Tata Steel in terms of valuation and growth trajectory? That could sharpen your conviction. 🧠

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