JINDALSTEL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.0
| Stock Code | JINDALSTEL | Market Cap | 1,18,921 Cr. | Current Price | 1,166 ₹ | High / Low | 1,181 ₹ |
| Stock P/E | 27.0 | Book Value | 515 ₹ | Dividend Yield | 0.17 % | ROCE | 11.7 % |
| ROE | 9.37 % | Face Value | 1.00 ₹ | DMA 50 | 1,062 ₹ | DMA 200 | 1,008 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | 0.36 % | PAT Qtr | 710 Cr. | PAT Prev Qtr | 921 Cr. |
| RSI | 66.6 | MACD | 30.2 | Volume | 23,68,900 | Avg Vol 1Wk | 24,31,572 |
| Low price | 770 ₹ | High price | 1,181 ₹ | PEG Ratio | -1.39 | Debt to equity | 0.13 |
| 52w Index | 96.5 % | Qtr Profit Var | -39.0 % | EPS | 32.6 ₹ | Industry PE | 21.6 |
📊 Jindal Steel (JINDALSTEL) shows moderate fundamentals with ROCE (11.7%) and ROE (9.37%) at modest levels, while valuations are slightly above industry average (P/E 27.0 vs. 21.6). Technically, the stock is trading well above both 50 DMA (1,062 ₹) and 200 DMA (1,008 ₹), with RSI at 66.6 indicating strong bullish momentum but nearing overbought territory. MACD at 30.2 confirms positive momentum. Despite declining quarterly profits, the stock remains a good candidate for swing trading with short-term upside potential.
💡 Optimal Entry Price: Around 1,150 ₹ – 1,165 ₹ (near current support zone).
🚪 Exit Strategy: If already holding, consider exiting near 1,175 ₹ – 1,185 ₹ (close to 52-week high resistance) or place a stop-loss below 1,120 ₹.
✅ Positive
- Stock trading above both 50 DMA and 200 DMA shows strong bullish trend.
- MACD at 30.2 confirms positive momentum.
- DII holdings increased (+0.36%), showing domestic institutional support.
- EPS of 32.6 ₹ provides earnings visibility.
- Low debt-to-equity ratio (0.13) ensures financial stability.
⚠️ Limitation
- High RSI (66.6) indicates overbought levels, raising risk of short-term correction.
- Quarterly profit variation (-39.0%) shows earnings weakness.
- ROCE (11.7%) and ROE (9.37%) are modest compared to peers.
- PEG ratio (-1.39) suggests poor growth prospects relative to valuation.
📉 Company Negative News
- Quarterly PAT dropped from 921 Cr. to 710 Cr., reflecting earnings decline.
- FII holdings decreased (-0.41%), showing reduced foreign investor confidence.
📈 Company Positive News
- Stock trading near 52-week high (96.5% of range), reflecting strong momentum.
- Strong technical indicators support short-term bullishness.
🏭 Industry
- Industry PE at 21.6 vs. JINDALSTEL PE at 27.0 suggests slight overvaluation compared to peers.
- Steel sector benefits from infrastructure demand but faces margin pressures from raw material costs.
🔎 Conclusion
Jindal Steel is technically strong with bullish momentum but fundamentally stretched with declining profits. Swing traders may enter near 1,150 ₹ – 1,165 ₹ with a target around 1,175 ₹ – 1,185 ₹. Stop-loss below 1,120 ₹ is recommended. The stock offers good swing trade potential with a rating of 4.0.