Jindal Saw Ltd (JINDALSAW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Usha Martin

Shyam Metalics

Jayaswal Neco

Technocraf.Inds.

Welspun Corp

Godawari Power

Aeroflex

Jindal Saw

Gallantt Ispat L

Ratnamani Metals

Mah. Seamless

Why is Jindal Saw Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 8.93% and Operating profit at 5.06% over the last 5 years

With a fall in Net Sales of -3.91%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 6 consecutive quarters
The company has declared negative results in Mar 25 after 9 consecutive negative quarters
OPERATING CF(Y) Lowest at Rs 1,771.39 Cr
PAT(Q) At Rs 104.17 cr has Fallen at -57.2% (vs previous 4Q average)
ROCE(HY) Lowest at 9.82%

With ROCE of 9.5, it has a Attractive valuation with a 1.3 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 17.60%, its profits have fallen by -62%

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 1.66% over the previous quarter and collectively hold 19.26% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jindal Saw should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Jindal Saw for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jindal Saw

17.69%

0.38

46.06%

Sensex

-4.99%

-0.37

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.93%

EBIT Growth (5y)

5.06%

EBIT to Interest (avg)

2.93

Debt to EBITDA (avg)

2.72

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.18

Tax Ratio

28.86%

Dividend Payout Ratio

13.14%

Pledged Shares

21.53%

Institutional Holding

19.26%

ROCE (avg)

12.30%

ROE (avg)

10.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.37

EV to EBIT

16.42

EV to EBITDA

11.00

EV to Capital Employed

1.28

EV to Sales

1.17

PEG Ratio

Dividend Yield

0.74%

ROCE (Latest)

9.48%

ROE (Latest)

7.74%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.37 times

-23What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 1,771.39 Cr

PAT(Q)

At Rs 104.17 cr has Fallen at -57.2% (vs previous 4Q average

ROCE(HY)

Lowest at 9.82%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.78 times

PBDIT(Q)

Lowest at Rs 396.70 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 8.91%

PBT LESS OI(Q)

Lowest at Rs 119.20 cr.

EPS(Q)

Lowest at Rs 1.63

Loading Valuation Snapshot...

Here's what is working for Jindal Saw

Debt-Equity Ratio - Half Yearly

Lowest at 0.37 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Jindal Saw

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 119.20 cr has Fallen at -51.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 246.01 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 104.17 cr has Fallen at -57.2% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 243.34 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs 1,771.39 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 396.70 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 8.91%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 119.20 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1.63

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 5.78 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio