JINDALSAW - Investment Analysis: Buy Signal or Bull Trap?

Last Updated Time : 05 Nov 25, 7:43 am

Investment Rating: 4.1

🧱 Jindal Saw is a fundamentally strong value stock with attractive valuation metrics and low debt. Ideal entry zone: ₹165–₹180. Long-term holding of 3–5 years is recommended for recovery and re-rating.

🔷 Positive

• 📊 ROCE of 20.9% and ROE of 17.4% indicate excellent capital efficiency.
• 📉 P/E of 8.07 is significantly below industry average (24.2), suggesting undervaluation.
• 📈 PEG ratio of 0.12 highlights strong value relative to growth.
• 📉 Debt-to-equity ratio of 0.28 reflects conservative financial structure.
• 💸 Dividend yield of 1.13% adds modest income potential.

⚠️ Limitation

• 📉 Quarterly PAT dropped 83.4% from ₹364 Cr to ₹79.3 Cr, raising short-term concerns.
• 📉 MACD at -7.86 and RSI at 27.3 indicate bearish technical momentum.
• 📉 Current price below both DMA 50 and DMA 200 suggests weak trend support.
• 📉 DII holding declined by 0.42%, signaling cautious domestic sentiment.

📉 Company Negative News

• 📉 PAT decline attributed to margin pressure and lower export volumes in Q2 FY26.

📈 Company Positive News

• 🏗️ As of November 2025, Jindal Saw is considered undervalued with a Price-to-Book of 0.98 and EV/EBITDA of 5.46

  MarketsMojo.com

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• 📈 Valuation grade upgraded from “very attractive” to “attractive,” indicating potential for recovery

  MarketsMojo.com

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🏭 Industry

• 🔩 Iron & steel intermediate products benefit from infrastructure demand and global supply chain shifts.
• 📈 Industry P/E of 24.2 reflects moderate optimism and room for re-rating of undervalued players.

✅ Conclusion

• 📌 Jindal Saw is a fundamentally strong value stock with excellent ROE/ROCE and low valuation multiples.
• 🎯 Ideal entry zone: ₹165–₹180 based on support levels and valuation comfort.
• ⏳ If already holding, maintain for 3–5 years to benefit from margin recovery and sector tailwinds.
• 🚪 Exit strategy: Consider partial exit near ₹325–₹340; reassess if PAT remains volatile or technicals stay weak.

Sources

MarketsMojo.com

MarketsMojo Valuation Report,

Trendlyne

Trendlyne Stock Analysis