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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Jindal Stainless Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:03 pm

Market Cap 55,285 Cr.
Current Price 672
High / Low848/492
Stock P/E22.6
Book Value 188
Dividend Yield0.45 %
ROCE22.2 %
ROE19.9 %
Face Value 2.00
PEG Ratio0.25

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

View Share Price Target for Jindal Stainless Ltd

Competitors of Jindal Stainless Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Elango Industries Ltd 4.56 Cr. 11.919.6/7.43 10.10.00 %3.45 %3.45 % 10.0
Ashnisha Industries Ltd 48.5 Cr. 4.8016.5/4.35105 5.910.00 %1.84 %1.64 % 1.00
Usha Martin Ltd 11,969 Cr. 393451/27328.0 84.50.70 %22.1 %19.2 % 1.00
Shah Alloys Ltd 137 Cr. 70.0113/52.0 1.080.00 %5.46 %43.8 % 10.0
Mukand Ltd 1,896 Cr. 131213/12619.2 65.11.53 %10.8 %11.5 % 10.0
Industry Average17,321.75 Cr213.7843.7059.120.45%10.98%16.58%5.67

All Competitor Stocks of Jindal Stainless Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales3,5853,9144,0335,0275,6709,7268,1198,7519,0629,76510,1849,7979,127
Expenses3,1113,3713,4324,2794,8738,3147,2298,0668,1948,6218,9928,5667,881
Operating Profit4735426017487971,4128896858681,1441,1921,2311,246
OPM %13%14%15%15%14%15%11%8%10%12%12%13%14%
Other Income228534414347503574787614052
Interest121978582938279877683100156146
Depreciation10197949393184179182181181188222236
Profit before tax2744344566146541,193682450685957981993917
Tax %38%33%33%33%32%25%26%23%25%25%25%23%25%
Net Profit170293306412442895508347513716738764691
EPS in Rs3.495.946.218.088.6416.709.486.729.479.309.069.408.41

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
Sales8,68111,24412,8106,9337,1449,27911,63813,55712,95112,18832,73335,69738,809
Expenses7,73310,53611,8006,5646,5718,11310,29412,39211,81910,76427,64232,11134,373
Operating Profit9487091,0103685731,1661,3431,1651,1321,4245,0903,5864,435
OPM %11%6%8%5%8%13%12%9%9%12%16%10%11%
Other Income-174-149-3741,238-1463624544148171236367
Interest5701,0431,2959421,030788566637586480344325414
Depreciation448740728411316325320352425403759724773
Profit before tax-245-1,224-1,387253-7881165202221656904,1592,7743,616
Tax %26%31%1%0%29%28%34%35%56%39%25%25%
Net Profit-183-842-1,367253-55683346145734193,1092,0842,731
EPS in Rs-9.49-41.19-63.5211.17-24.052.047.162.971.468.6058.5925.6837.23
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-360.11%-62.35%118.51%-319.76%114.93%316.87%-58.09%-49.66%473.97%642.00%-32.97%
Change in YoY Net Profit Growth (%)0.00%297.76%180.86%-438.27%434.69%201.94%-374.96%8.44%523.63%168.03%-674.97%

Jindal Stainless 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:23%
3 Years:47%
TTM:-3%
Compounded Profit Growth
10 Years:17%
5 Years:79%
3 Years:94%
TTM:-7%
Stock Price CAGR
10 Years:49%
5 Years:76%
3 Years:57%
1 Year:24%
Return on Equity
10 Years:%
5 Years:23%
3 Years:25%
Last Year:20%

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 Capital414345468096969797105165165165
Reserves1,29916-2141,6661,7342,3692,4952,6203,1089,71811,76614,19315,297
Borrowings11,60111,92711,28910,3475,8885,0154,3883,9033,2304,0073,9586,0526,473
Other Liabilities4,3094,4462,8982,7983,2083,3543,7364,0574,3008,74611,22610,35512,178
Total Liabilities17,25016,43114,01814,85810,90910,83410,71510,67810,73522,57627,11530,76534,113
Fixed Assets10,1579,7807,5526,8636,6096,3426,3456,1815,8558,6469,96113,25414,581
CWIP16115714470291442915585257731,1121,590
Investments2218143934044394544494566269701,2461,273
Other Assets6,9106,4766,3087,5323,8683,9093,8874,0334,36512,77915,41115,15216,669
Total Assets17,25016,43114,01814,85810,90910,83410,71510,67810,73522,57627,11530,76534,113

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2829585549665,1151,4521,4191,1801,3081,0383,0964,818
Cash from Investing Activity +-74-136-11,053-30-194-192-186-152-985-2,480-3,229
Cash from Financing Activity +-282-891-580-1,972-5,106-1,257-1,237-991-1,119101-386-829
Net Cash Flow-73-69-2847-211-11437154229760

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow948.00698.00-10.00357.00563.00-4.00-4.00-3.00-2.00-2.001.000.00

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 Days634857483528252028433727
Inventory Days17515814715413311696117130116125108
Days Payable146125104143119104991131239811795
Cash Conversion Cycle9181101595041222335614641
Working Capital Days80511731951131-615484136
ROCE %0%3%-0%2%9%14%12%11%16%44%21%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters68.60%68.60%69.87%70.10%70.09%70.09%57.95%57.95%57.94%58.68%60.49%60.48%
FIIs14.33%15.01%15.10%13.77%12.71%13.05%21.92%22.20%23.37%22.56%20.83%22.49%
DIIs6.64%7.21%6.31%5.86%6.48%7.21%6.15%6.01%5.42%5.81%6.62%6.25%
Public10.43%9.18%8.72%10.27%10.71%9.64%13.99%13.85%13.26%12.94%12.06%10.78%
No. of Shareholders1,02,9361,01,6001,10,2681,31,1741,31,2441,14,6521,46,5811,39,3651,52,7091,66,1831,87,7262,02,103

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Value Fund7,379,6293.52326.59924,3662024-11-22698.34%
Quant Small Cap Fund3,175,0261.48140.51924,3662024-11-22243.48%
ICICI Prudential MidCap Fund2,464,7762.57109.08924,3662024-11-22166.65%
Quant Tax Plan1,839,9251.6481.43924,3662024-11-2299.05%
ITI Small Cap Fund924,3662.4840.91924,3662024-11-220%
Mahindra Manulife Small Cap Fund648,3411.2828.69924,3662024-11-22-29.86%
Bandhan Core Equity Fund549,7520.8424.33924,3662024-11-22-40.53%
Bank of India Mid & Small Cap Equity & Debt Fund537,0004.8323.76924,3662024-11-22-41.91%
HSBC Midcap Fund530,0000.2923.46924,3662024-11-22-42.66%
SBI Magnum Comma Fund515,0004.9622.79924,3662024-11-22-44.29%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 22Mar 21Mar 20Mar 19Mar 18
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)82.3329.4016.6516.1624.50
Diluted EPS (Rs.)82.3329.4016.6516.1624.50
Cash EPS (Rs.)70.0435.6128.3726.8630.71
Book Value[Excl.RevalReserv]/Share (Rs.)209.40127.0697.3080.5463.83
Book Value[Incl.RevalReserv]/Share (Rs.)209.40127.0697.3080.5463.83
Revenue From Operations / Share (Rs.)636.21398.40397.50436.06438.95
PBDIT / Share (Rs.)96.3152.3145.2748.3557.08
PBIT / Share (Rs.)85.7140.0032.7836.0945.03
PBT / Share (Rs.)80.1431.1219.9521.9628.56
Net Profit / Share (Rs.)59.4523.3015.8914.6018.66
NP After MI And SOA / Share (Rs.)82.3329.4016.6516.1624.50
PBDIT Margin (%)15.1313.1211.3811.0813.00
PBIT Margin (%)13.4710.048.248.2710.25
PBT Margin (%)12.597.815.015.036.50
Net Profit Margin (%)9.345.843.993.344.25
NP After MI And SOA Margin (%)12.947.384.183.705.58
Return on Networth / Equity (%)39.5623.3417.2920.5839.20
Return on Capital Employeed (%)32.6721.9218.4021.4227.47
Return On Assets (%)19.669.845.965.878.54
Long Term Debt / Equity (X)0.240.420.801.061.53
Total Debt / Equity (X)0.370.480.901.181.88
Asset Turnover Ratio (%)1.801.331.361.431.44
Current Ratio (X)1.721.091.161.050.99
Quick Ratio (X)1.000.490.500.460.41
Inventory Turnover Ratio (X)4.793.573.753.883.48
Interest Coverage Ratio (X)17.314.923.313.113.30
Interest Coverage Ratio (Post Tax) (X)11.693.032.101.852.03
Enterprise Value (Cr.)10950.714410.952977.294410.476504.96
EV / Net Operating Revenue (X)0.720.460.310.420.62
EV / EBITDA (X)4.823.572.793.874.83
MarketCap / Net Operating Revenue (X)0.600.310.100.210.35
Price / BV (X)1.860.990.411.192.52
Price / Net Operating Revenue (X)0.600.310.100.210.35
EarningsYield0.210.230.410.170.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Jindal Stainless Ltd as of November 23, 2024 is: 849.32

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 November 23, 2024, Jindal Stainless Ltd is Undervalued by 26.39% compared to the current share price 672.00

Intrinsic Value of Jindal Stainless Ltd as of November 23, 2024 is: 1,623.23

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 November 23, 2024, Jindal Stainless Ltd is Undervalued by 141.55% compared to the current share price 672.00

Last 5 Year EPS CAGR: 91.12%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (15.85 cr) and profit (72.31 cr) over the years.
  1. The stock has a low average ROCE of 12.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 54.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 54.25, which may not be favorable.
  4. The company has higher borrowings (6,775.23) compared to reserves (5,082.08), which may suggest financial risk.

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 Stainless Ltd:
    1. Net Profit Margin: 9.34%
      • 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: 32.67% (Industry Average ROCE: 10.98%)
      • 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%: 39.56% (Industry Average ROE: 16.58%)
      • 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): 11.69
      • 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: 1
      • 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: 22.6 (Industry average Stock P/E: 29.13)
      • 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: 0.37
      • 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 Stainless Ltd. is a Public Limited Listed company incorporated on 29/09/1980 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L26922HR1980PLC010901 and registration number is 010901. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 20311.94 Cr. and Equity Capital is Rs. 105.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Alloys/SpecialO P Jindal Marg, Hissar Haryana 125005investorcare@jindalstainless.com
http://www.jslstainless.com
Management
NamePosition Held
Mrs. Savitri Devi JindalChairperson Emeritus
Mr. Ratan JindalChairman & Managing Director
Mr. Abhyuday JindalManaging Director
Mr. Tarun Kumar KhulbeWhole Time Director
Mr. Jagmohan SoodWhole Time Director & COO
Mr. Anurag MantriExecutive Director & Group CFO
Mr. Praveen Kumar MalhotraNon Executive Director
Mr. Jayaram EaswaranIndependent Director
Dr. Rajeev UberoiIndependent Director
Dr. Aarti GuptaIndependent Director
Mr. Ajay MankotiaIndependent Director
Mrs. Shruti ShrivastavaIndependent Director
Mrs. Arti LuniyaIndependent Director

FAQ

What is the latest intrinsic value of Jindal Stainless Ltd?

The latest intrinsic value of Jindal Stainless Ltd as on 23 November 2024 is ₹849.32, which is 26.39% higher than the current market price of ₹672.00.

What is the Market Cap of Jindal Stainless Ltd?

The Market Cap of Jindal Stainless Ltd is 55,285 Cr..

What is the current Stock Price of Jindal Stainless Ltd as on 23 November 2024?

The current stock price of Jindal Stainless Ltd as on 23 November 2024 is 672.

What is the High / Low of Jindal Stainless Ltd stocks in FY 2024?

In FY 2024, the High / Low of Jindal Stainless Ltd stocks is 848/492.

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

The Stock P/E of Jindal Stainless Ltd is 22.6.

What is the Book Value of Jindal Stainless Ltd?

The Book Value of Jindal Stainless Ltd is 188.

What is the Dividend Yield of Jindal Stainless Ltd?

The Dividend Yield of Jindal Stainless Ltd is 0.45 %.

What is the ROCE of Jindal Stainless Ltd?

The ROCE of Jindal Stainless Ltd is 22.2 %.

What is the ROE of Jindal Stainless Ltd?

The ROE of Jindal Stainless Ltd is 19.9 %.

What is the Face Value of Jindal Stainless Ltd?

The Face Value of Jindal Stainless Ltd is 2.00.

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 Stainless 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