Jindal Steel Ltd. (JINDALSTEL) 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

Tata Steel

JSW Steel

Jindal Stain.

SAIL

Indian Metals

Lloyds Metals

Jindal Steel

Kirl. Ferrous

NMDC Steel

Sarda Energy

KIOCL

Why is Jindal Steel Ltd. ?

High Management Efficiency with a high ROCE of 18.51%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.98 times

Poor long term growth as Operating profit has grown by an annual rate -5.80% of over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

PBT LESS OI(Q) At Rs 383.90 cr has Fallen at -71.3% (vs previous 4Q average)
PAT(Q) At Rs 220.79 cr has Fallen at -67.8% (vs previous 4Q average)
INTEREST(Latest six months) At Rs 777.72 cr has Grown at 21.87%

With ROCE of 10.4, it has a Fair valuation with a 2.1 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 41.65%, its profits have fallen by -20.7%

High Institutional Holdings at 28.11%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 41.65% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jindal Steel should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

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

Is Jindal Steel for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Jindal Steel

41.73%

1.51

27.66%

Sensex

9.01%

0.78

11.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.94%

EBIT Growth (5y)

-5.80%

EBIT to Interest (avg)

5.59

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.29

Sales to Capital Employed (avg)

0.86

Tax Ratio

40.89%

Dividend Payout Ratio

7.20%

Pledged Shares

10.87%

Institutional Holding

28.11%

ROCE (avg)

18.25%

ROE (avg)

13.50%

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

2.45

EV to EBIT

22.69

EV to EBITDA

15.12

EV to Capital Employed

2.12

EV to Sales

2.71

PEG Ratio

Dividend Yield

0.17%

ROCE (Latest)

10.43%

ROE (Latest)

8.01%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

Mildly 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

NO KEY POSITIVE TRIGGERS

-23What is not working for the Company

PBT LESS OI(Q)

At Rs 383.90 cr has Fallen at -71.3% (vs previous 4Q average

PAT(Q)

At Rs 220.79 cr has Fallen at -67.8% (vs previous 4Q average

INTEREST(Latest six months)

At Rs 777.72 cr has Grown at 21.87%

ROCE(HY)

Lowest at 9.92%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 4.02 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 3,496.06 cr

PBDIT(Q)

Lowest at Rs 1,633.72 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 12.54%

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Here's what is not working for Jindal Steel

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 383.90 cr has Fallen at -71.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1,337.57 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 220.79 cr has Fallen at -67.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 685.82 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 4.02 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest - Latest six months

At Rs 777.72 cr has Grown at 21.87%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 1,633.72 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 12.54%

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 383.90 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 3,496.06 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents