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Last Updated on: 03 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Jindal Saw Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 3, 2024, 9:51 pm

Market Cap 20,230 Cr.
Current Price 317
High / Low384/189
Stock P/E10.7
Book Value 171
Dividend Yield0.63 %
ROCE21.4 %
ROE17.7 %
Face Value 1.00
PEG Ratio0.64

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Jindal Saw Ltd

Competitors of Jindal Saw Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hariom Pipe Industries Ltd 1,749 Cr. 565889/44029.2 1780.11 %14.6 %13.5 % 10.0
Earthstahl & Alloys Ltd 49.3 Cr. 40.366.0/0.0032.7 30.70.00 %8.22 %5.21 % 10.0
Crimson Metal Engineering Company Ltd 4.57 Cr. 10.310.3/9.38 12.50.00 %7.27 %21.7 % 10.0
Welspun Corp Ltd 20,613 Cr. 785806/44018.8 2300.64 %20.2 %19.8 % 5.00
Surya Roshni Ltd 6,347 Cr. 584842/46719.7 2080.43 %20.8 %16.2 % 5.00
Industry Average11,244.36 Cr610.3046.32137.490.25%15.36%13.69%4.85

All Competitor Stocks of Jindal Saw Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,8653,7842,8852,9733,4713,9703,4784,0445,1585,1884,4105,4665,656
Expenses2,5563,3092,4662,5953,2663,5693,2403,7124,6634,5883,8024,6624,668
Operating Profit308475419378205401238331495600608804988
OPM %11%13%15%13%6%10%7%8%10%12%14%15%17%
Other Income47474132384232-24479382341
Interest125111121112108119160148169161160189181
Depreciation113125112120122118110117118126133143149
Profit before tax11628722617912205164252392353495699
Tax %24%35%36%40%94%40%2,275%67%43%25%31%28%27%
Net Profit881871461081122-1621143294243356512
EPS in Rs2.065.764.763.750.403.970.151.866.7111.068.2311.7516.62

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,0366,7656,6568,2087,7037,0708,50712,11711,62710,66413,29817,86820,222
Expenses5,3626,1606,0147,2546,9796,3937,46610,64510,1169,42211,89916,19117,715
Operating Profit6756046429547236771,0411,4721,5111,2421,3991,6772,507
OPM %11%9%10%12%9%10%12%12%13%12%11%9%12%
Other Income-46-118267613633024515-3209155141184
Interest165236392606679569579615620493460638678
Depreciation182219321335328337363396422459473471519
Profit before tax28231-4689-1481011229754674996217101,493
Tax %33%163%-120%131%46%62%109%22%1%34%40%38%
Net Profit188-20-100-27-8039-117644613283764431,036
EPS in Rs6.85-0.68-3.10-0.50-1.323.565.5826.5817.359.9712.8819.7737.75
Dividend Payout %15%-146%-32%-200%-76%28%22%8%12%20%16%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-110.64%-400.00%73.00%-196.30%148.75%-128.21%7045.45%-39.66%-28.85%14.63%17.82%
Change in YoY Net Profit Growth (%)0.00%-289.36%473.00%-269.30%345.05%-276.96%7173.66%-7085.11%10.81%43.48%3.19%

Jindal Saw Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:12%
3 Years:25%
TTM:7%
Compounded Profit Growth
10 Years:29%
5 Years:27%
3 Years:71%
TTM:81%
Stock Price CAGR
10 Years:20%
5 Years:53%
3 Years:83%
1 Year:37%
Return on Equity
10 Years:6%
5 Years:9%
3 Years:10%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 10:30 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital55555861646464646464646464
Reserves3,6123,5135,3325,0615,3225,4326,2186,7006,9197,3007,85710,02910,846
Borrowings5,1595,9898,1027,5476,2226,3115,6925,6495,3356,0314,9615,7615,526
Other Liabilities1,8861,8582,5071,6761,2481,3892,8072,6693,4973,0485,0014,8244,680
Total Liabilities10,71311,41615,99914,34612,85613,19714,78115,08215,81516,44317,88320,67921,116
Fixed Assets4,2475,8438,2397,9777,4557,1207,1637,4917,3167,3577,4848,8538,835
CWIP1,410343531254102126260423404293300632864
Investments15475309154119110190129198224175178148
Other Assets4,9035,1556,9215,9615,1805,8407,1697,0397,8988,5709,92411,01611,269
Total Assets10,71311,41615,99914,34612,85613,19714,78115,08215,81516,44317,88320,67921,116

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +222109-1839171,1635651,5671,6651,570731,6162,593
Cash from Investing Activity +-1,482-615-867-517-428-121-518-468-359-190-68-1,917
Cash from Financing Activity +1,2553591,253-512-816-470-977-1,168-83161-1,966-12
Net Cash Flow-5-148203-112-81-257228379-55-419663

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow675.00599.00637.00946.00716.00671.00-5.00-4.00-4.00-4.00-5.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days919691837183675973507360
Inventory Days153188257210221183156141177173134147
Days Payable6867774239428874117719889
Cash Conversion Cycle176217271250253224134126132152109119
Working Capital Days146177169169151159936979947580
ROCE %6%4%6%4%4%7%11%10%8%9%11%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters63.02%63.02%63.02%63.03%63.03%63.25%63.26%63.26%63.26%63.27%63.29%63.29%
FIIs12.38%11.61%11.85%11.69%11.03%14.94%15.92%17.71%15.22%14.66%15.06%16.08%
DIIs0.88%0.84%0.86%0.85%0.91%1.20%1.18%1.67%2.27%2.99%3.87%4.54%
Public23.06%23.87%23.61%23.79%24.38%19.98%19.05%16.79%18.66%18.60%17.32%15.65%
Others0.66%0.66%0.65%0.65%0.65%0.64%0.59%0.58%0.58%0.49%0.46%0.46%
No. of Shareholders99,0611,13,1141,12,1351,10,3571,05,75685,83983,04892,0001,16,1811,19,4221,37,3581,48,683

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Small Cap Fund - Regular Plan1,679,3480.6474.381,324,5302024-12-0226.79%
HSBC Value Fund1,324,5300.6358.661,324,5302024-12-020%
HSBC Infrastructure Fund266,0000.6511.781,324,5302024-12-02-79.92%
Nippon India Nifty Smallcap 250 Index Fund69,5740.433.081,324,5302024-12-02-94.75%
Motilal Oswal Nifty Smallcap 250 Index Fund43,6800.431.931,324,5302024-12-02-96.7%
SBI Nifty Smallcap 250 Index Fund32,0570.431.421,324,5302024-12-02-97.58%
Motilal Oswal Nifty 500 Index Fund4,7680.040.211,324,5302024-12-02-99.64%
Edelweiss Nifty Smallcap 250 Index Fund1,4750.430.071,324,5302024-12-02-99.89%
Groww Nifty Total Market Index Fund2620.040.011,324,5302024-12-02-99.98%
Motilal Oswal Nifty 500 ETF2090.040.011,324,5302024-12-02-99.98%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)52.7519.9112.9610.0217.35
Diluted EPS (Rs.)52.6819.9112.9610.0217.35
Cash EPS (Rs.)67.6028.5826.5524.6027.61
Book Value[Excl.RevalReserv]/Share (Rs.)292.94227.62214.20204.51196.68
Book Value[Incl.RevalReserv]/Share (Rs.)292.94227.62214.20204.51196.68
Revenue From Operations / Share (Rs.)655.42558.79415.89333.49363.62
PBDIT / Share (Rs.)109.1257.6648.6245.3850.67
PBIT / Share (Rs.)91.3642.9433.8331.0337.48
PBT / Share (Rs.)69.3222.2219.4415.6114.59
Net Profit / Share (Rs.)49.8413.8611.7610.2514.43
NP After MI And SOA / Share (Rs.)52.4519.7811.769.9717.35
PBDIT Margin (%)16.6410.3111.6813.6013.93
PBIT Margin (%)13.937.688.139.3010.30
PBT Margin (%)10.573.974.674.684.01
Net Profit Margin (%)7.602.482.823.073.96
NP After MI And SOA Margin (%)8.003.532.822.984.77
Return on Networth / Equity (%)16.617.985.104.568.20
Return on Capital Employeed (%)23.0013.4411.1310.0412.44
Return On Assets (%)7.973.462.231.963.58
Long Term Debt / Equity (X)0.200.210.240.320.34
Total Debt / Equity (X)0.550.590.780.620.72
Asset Turnover Ratio (%)1.071.020.710.580.71
Current Ratio (X)1.241.111.031.060.99
Quick Ratio (X)0.640.590.490.590.53
Inventory Turnover Ratio (X)2.812.842.282.012.12
Dividend Payout Ratio (NP) (%)5.6810.0416.9119.9413.89
Dividend Payout Ratio (CP) (%)4.245.757.498.177.89
Earning Retention Ratio (%)94.3289.9683.0980.0686.11
Cash Earning Retention Ratio (%)95.7694.2592.5191.8392.11
Interest Coverage Ratio (X)4.952.893.382.942.61
Interest Coverage Ratio (Post Tax) (X)3.261.731.821.671.92
Enterprise Value (Cr.)17782.558481.507479.105589.175558.46
EV / Net Operating Revenue (X)0.840.470.560.520.47
EV / EBITDA (X)5.104.604.813.853.43
MarketCap / Net Operating Revenue (X)0.650.260.210.220.12
Retention Ratios (%)94.3189.9583.0880.0586.10
Price / BV (X)1.370.580.390.330.21
Price / Net Operating Revenue (X)0.650.260.210.220.12
EarningsYield0.120.130.130.130.37

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Jindal Saw Ltd as of December 3, 2024 is: 325.90

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 3, 2024, Jindal Saw Ltd is Undervalued by 2.81% compared to the current share price 317.00

Intrinsic Value of Jindal Saw Ltd as of December 3, 2024 is: 380.72

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 3, 2024, Jindal Saw Ltd is Undervalued by 20.10% compared to the current share price 317.00

Last 5 Year EPS CAGR: 16.82%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (6,472.38 cr) compared to borrowings (6,021.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (10.08 cr) and profit (284.92 cr) over the years.
  1. The stock has a low average ROCE of 8.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 121.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 180.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Jindal Saw Ltd:
    1. Net Profit Margin: 7.6%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23% (Industry Average ROCE: 14.18%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16.61% (Industry Average ROE: 12.64%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.26
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.64
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 10.7 (Industry average Stock P/E: 42.75)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.55
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Jindal Saw Ltd. is a Public Limited Listed company incorporated on 31/10/1984 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L27104UP1984PLC023979 and registration number is 023979. Currently Company is involved in the business activities of Manufacture of tube and tube fittings of basic iron and steel. Company’s Total Operating Revenue is Rs. 11022.27 Cr. and Equity Capital is Rs. 63.95 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/PipesA-1, UPSIDC Industrial Area, Mathura District Uttar Pradesh 281403investors@jindalsaw.com
http://www.jindalsaw.com
Management
NamePosition Held
Mrs. Savitri Devi JindalChairperson Emeritus
Mr. Prithavi Raj JindalChairman & Non-Exe.Director
Ms. Sminu JindalManaging Director
Mr. Neeraj KumarWholeTime Director & Group CEO
Mr. Hawa Singh ChaudharyWhole Time Director
Ms. Shradha JatiaJoint Managing Director
Ms. Tripti Puneet AryaJoint Managing Director
Mr. Ajit Kumar HazarikaIndependent Director
Mr. Girish SharmaIndependent Director
Mr. Abhiram TayalIndependent Director
Mr. Sanjeev ShankarIndependent Director
Dr. Vinita JhaIndependent Director
Dr. Raj Kamal AgarwalIndependent Director
Mr. Ravinder Nath LeekhaIndependent Director

FAQ

What is the latest intrinsic value of Jindal Saw Ltd?

The latest intrinsic value of Jindal Saw Ltd as on 03 December 2024 is ₹325.90, which is 2.81% higher than the current market price of ₹317.00. The stock has a market capitalization of 20,230 Cr. and recorded a high/low of ₹384/189 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹10,846 Cr and total liabilities of ₹21,116 Cr.

What is the Market Cap of Jindal Saw Ltd?

The Market Cap of Jindal Saw Ltd is 20,230 Cr..

What is the current Stock Price of Jindal Saw Ltd as on 03 December 2024?

The current stock price of Jindal Saw Ltd as on 03 December 2024 is 317.

What is the High / Low of Jindal Saw Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Jindal Saw Ltd stocks is 384/189.

What is the Stock P/E of Jindal Saw Ltd?

The Stock P/E of Jindal Saw Ltd is 10.7.

What is the Book Value of Jindal Saw Ltd?

The Book Value of Jindal Saw Ltd is 171.

What is the Dividend Yield of Jindal Saw Ltd?

The Dividend Yield of Jindal Saw Ltd is 0.63 %.

What is the ROCE of Jindal Saw Ltd?

The ROCE of Jindal Saw Ltd is 21.4 %.

What is the ROE of Jindal Saw Ltd?

The ROE of Jindal Saw Ltd is 17.7 %.

What is the Face Value of Jindal Saw Ltd?

The Face Value of Jindal Saw Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Jindal Saw Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE