Jindal Steel & Power downgraded to 'Sell' by MarketsMOJO due to negative results

Jindal Steel & Power, a largecap company in the steel/sponge iron/pig iron industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 13, 2024. This decision was based on negative results in the September 2024 quarter, with a decrease in PBT less OI of 23.9% and a decrease in PAT of 38.4%. Additionally, the company's ROCE for the half-year period was at its lowest at 11.54%.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since November 13, 2024, resulting in a -3.06% return. Multiple factors, such as MACD, Bollinger Band, and KST, contribute to the bearish outlook for the stock.

However, there are some positive aspects to consider. Jindal Steel & Power has shown high management efficiency with a ROCE of 17.02%. Its operating profit has also seen a healthy long-term growth rate of 20.33%. The company also has an attractive valuation with a ROCE of 12.1 and a 1.7 Enterprise value to Capital Employed. Furthermore, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, Jindal Steel & Power has generated a return of 34.99%, while its profits have risen by 17%. This results in a PEG ratio of 1, indicating a fair valuation. Additionally, the company has a high institutional holding of 28.24%, which suggests that these investors have better capabilities and resources to analyze the company's fundamentals.

Moreover, Jindal Steel & Power has consistently outperformed the BSE 500 index in the last three annual periods, further highlighting its potential for long-term growth. However, considering the recent downgrade and negative results, MarketsMOJO has recommended a 'Sell' for the stock. Investors should carefully evaluate all factors before making any investment decisions.