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Last Updated on: 26 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Jindal Steel & Power Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 8:25 pm

Market Cap 96,220 Cr.
Current Price 943
High / Low 1,097/688
Stock P/E19.0
Book Value 464
Dividend Yield0.21 %
ROCE13.2 %
ROE14.1 %
Face Value 1.00
PEG Ratio0.15

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

View Share Price Target for Jindal Steel & Power Ltd

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Chennai Ferrous Industries Ltd 46.5 Cr. 129 175/10310.6 1410.00 %10.2 %5.85 % 10.0
Bihar Sponge Iron Ltd 149 Cr. 16.6 26.8/10.013.8 5.610.00 %11.0 %% 10.0
Ashirwad Steels & Industries Ltd 48.4 Cr. 38.7 67.6/31.518.8 65.70.00 %4.08 %2.84 % 10.0
Vaswani Industries Ltd 141 Cr. 47.1 73.9/25.513.8 42.20.00 %13.3 %7.76 % 10.0
Sarda Energy & Minerals Ltd 16,831 Cr. 478 525/18028.1 1680.21 %15.3 %14.1 % 1.00
Industry Average17,563.22 Cr332.2030.88109.630.10%19.34%18.46%7.75

All Competitor Stocks of

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8,1499,28110,59410,61013,61212,52514,33913,04513,52112,45213,69212,58812,250
Expenses5,7545,3576,3598,5729,0189,21511,2709,60711,59010,07511,5059,9609,965
Operating Profit2,3953,9234,2342,0374,5943,3103,0703,4391,9312,3772,1872,6282,285
OPM %29%42%40%19%34%26%21%26%14%19%16%21%19%
Other Income146318-113498255276866-898-361-1385532
Interest701643576561482472373364365346371329329
Depreciation612608588602610613272596614608873588604
Profit before tax1,2282,9903,0599083,6012,4802,7013,344541,0628051,7671,384
Tax %27%14%30%98%26%25%18%17%-304%51%42%4%-0%
Net Profit8972,5672,139142,6781,8662,2072,7712195184661,6921,390
EPS in Rs8.2022.1019.300.4025.3315.8514.8119.541.965.084.5316.5413.60

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
Sales18,20919,80719,28619,40119,46921,60333,28646,96637,92334,57951,16653,21250,232
Expenses11,41013,70113,48713,93716,03216,89426,81738,55331,09223,64635,65043,27040,289
Operating Profit6,7996,1065,7995,4643,4374,7096,4698,4126,83110,93315,5159,9429,943
OPM %37%31%30%28%18%22%19%18%18%32%30%19%20%
Other Income310333349-1,399-79-362-584-1,47074313-1,840-539-15
Interest5331,0671,8072,8753,2543,4413,8664,2643,7682,7531,8881,4461,345
Depreciation1,3861,5391,8292,7334,0683,9493,8835,4803,4292,4142,0972,6912,700
Profit before tax5,1893,8332,512-1,543-3,964-3,043-1,864-2,802-2916,0789,6905,2665,883
Tax %23%24%25%6%22%17%13%14%-37%30%30%25%
Net Profit4,0222,9521,896-1,452-3,087-2,538-1,616-2,412-4004,2676,7663,9745,476
EPS in Rs42.4131.1320.88-13.97-32.42-24.93-14.56-17.00-1.0735.6256.4031.1153.57
Dividend Payout %4%5%7%0%0%0%0%0%0%0%5%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-26.60%-35.77%-176.58%-112.60%17.78%36.33%-49.26%83.42%1166.75%58.57%-41.27%
Change in YoY Net Profit Growth (%)0.00%-9.17%-140.81%63.98%130.39%18.54%-85.59%132.67%1083.33%-1108.18%-99.83%

Jindal Steel & Power 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:10%
5 Years:1%
3 Years:13%
TTM:-2%
Compounded Profit Growth
10 Years:12%
5 Years:62%
3 Years:16%
TTM:17%
Stock Price CAGR
10 Years:20%
5 Years:42%
3 Years:35%
1 Year:28%
Return on Equity
10 Years:4%
5 Years:11%
3 Years:14%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 3:21 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital93919191929797102102101100100101
Reserves21,15922,51920,95132,34529,95930,28831,98832,03531,71335,52438,60644,21647,240
Borrowings24,61836,36845,50146,79745,85042,96239,55936,82429,91013,50213,04616,47217,266
Other Liabilities11,2029,9358,99413,16614,67415,88417,35720,78016,11627,51717,67417,88818,163
Total Liabilities57,07368,91375,53792,39890,57589,23089,00189,74277,84076,64469,42778,67682,771
Fixed Assets19,42934,98946,64365,03865,93268,45069,03969,38154,34945,48843,54248,38449,332
CWIP19,23017,8119,07311,8279,7164,9784,0273,1261,7122,5387,8709,61112,418
Investments8093421,7853923681461501811,156470907819863
Other Assets17,60515,77118,03515,14214,55915,65715,78417,05520,62428,14717,10819,86220,158
Total Assets57,07368,91375,53792,39890,57589,23089,00189,74277,84076,64469,42778,67682,771

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3,5224,5801,1824,3336,8507,7249,0278,81411,96116,0487,3476,008
Cash from Investing Activity +-9,591-12,694-6,717-2,262-1,998-1,431-832-1,476-1,884-2,331-4,090-8,344
Cash from Financing Activity +6,1118,8795,708-2,672-5,108-6,276-8,261-7,016-4,612-15,120-2,5001,381
Net Cash Flow43766173-601-25617-673225,465-1,403757-955

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow6.00-18.00-31.00-40.00-43.00-41.00-36.00-31.00-30.00-19.002.00-4.00

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 Days3634322729202434309712
Inventory Days26828431418118519114620719613087117
Days Payable83151133129150162117181133946978
Cash Conversion Cycle222166213796450536092452452
Working Capital Days98519463-167-21-523131-221
ROCE %12%8%5%-1%1%3%4%5%14%24%14%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters60.47%60.44%60.45%60.44%61.20%61.21%61.21%61.21%61.21%61.21%61.21%61.19%
FIIs9.93%8.93%9.70%10.65%11.02%13.13%13.42%12.71%12.23%11.75%11.93%12.64%
DIIs14.96%16.71%17.34%15.75%14.87%14.17%13.90%14.74%15.22%15.33%14.73%15.34%
Government0.73%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public13.91%13.92%12.51%12.13%11.42%10.02%9.99%9.86%9.88%9.99%10.41%10.01%
Others0.00%0.00%0.00%1.02%1.48%1.48%1.48%1.48%1.48%1.73%1.73%0.81%
No. of Shareholders3,04,8022,99,9542,56,0463,01,8302,72,3332,36,4382,35,4732,30,7742,38,0542,50,7322,59,9912,80,533

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan14,982,9331.98949.622,179,2272024-12-24587.53%
Quant Tax Plan3,592,0004.29240.952,179,2272024-12-2464.83%
SBI Large & Midcap Fund2,849,4121.11191.142,179,2272024-12-2430.75%
SBI Arbitrage Opportunities Fund2,777,5000.78186.312,179,2272024-12-2427.45%
Bandhan Sterling Value Fund2,900,0002.75183.82,179,2272024-12-2433.07%
Nippon India ELSS Tax Saver Fund2,650,0001.36177.762,179,2272024-12-2421.6%
ICICI Prudential MidCap Fund2,179,2273.25138.122,179,2272024-12-240%
Nippon India Growth Fund1,942,6680.61130.312,179,2272024-12-24-10.86%
ICICI Prudential Equity - Arbitrage Fund1,903,7500.79120.662,179,2272024-12-24-12.64%
HDFC Large and Mid Cap Fund - Regular Plan1,600,0000.85101.412,179,2272024-12-24-26.58%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)59.1531.5456.4035.63-1.08
Diluted EPS (Rs.)59.1531.5456.4035.63-1.08
Cash EPS (Rs.)87.4466.3287.6975.6934.00
Book Value[Excl.RevalReserv]/Share (Rs.)446.44388.25367.02303.30307.46
Book Value[Incl.RevalReserv]/Share (Rs.)446.44388.25367.02303.30307.46
Revenue From Operations / Share (Rs.)499.07524.49505.45382.24361.94
PBDIT / Share (Rs.)103.3399.42153.99146.8977.26
PBIT / Share (Rs.)75.1872.65133.24113.0439.34
PBT / Share (Rs.)62.2644.63110.5571.53-2.41
Net Profit / Share (Rs.)59.2939.5466.9441.83-3.92
NP After MI And SOA / Share (Rs.)59.2431.5856.9235.62-1.07
PBDIT Margin (%)20.7018.9530.4638.4221.34
PBIT Margin (%)15.0613.8526.3629.5710.86
PBT Margin (%)12.478.5021.8718.71-0.66
Net Profit Margin (%)11.887.5313.2410.94-1.08
NP After MI And SOA Margin (%)11.876.0211.269.31-0.29
Return on Networth / Equity (%)13.408.1916.1411.42-0.33
Return on Capital Employeed (%)12.0113.5324.9619.686.03
Return On Assets (%)7.544.577.504.66-0.12
Long Term Debt / Equity (X)0.220.180.230.630.86
Total Debt / Equity (X)0.350.320.360.670.95
Asset Turnover Ratio (%)0.670.710.640.410.35
Current Ratio (X)1.110.991.171.050.68
Quick Ratio (X)0.660.610.850.740.41
Inventory Turnover Ratio (X)3.053.552.931.602.06
Dividend Payout Ratio (NP) (%)3.386.331.770.000.00
Dividend Payout Ratio (CP) (%)2.293.421.290.000.00
Earning Retention Ratio (%)96.6293.6798.230.000.00
Cash Earning Retention Ratio (%)97.7196.5898.710.000.00
Interest Coverage Ratio (X)8.006.918.244.841.90
Interest Coverage Ratio (Post Tax) (X)5.594.165.583.160.93
Enterprise Value (Cr.)97455.7062919.0764559.5849593.9837377.13
EV / Net Operating Revenue (X)1.951.191.261.271.01
EV / EBITDA (X)9.416.304.153.314.74
MarketCap / Net Operating Revenue (X)1.701.041.050.890.22
Retention Ratios (%)96.6193.6698.220.000.00
Price / BV (X)1.921.421.511.100.26
Price / Net Operating Revenue (X)1.701.041.050.890.22
EarningsYield0.060.050.100.10-0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Jindal Steel & Power Ltd as of December 26, 2024 is: 1,245.67

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 26, 2024, Jindal Steel & Power Ltd is Undervalued by 32.10% compared to the current share price 943.00

Intrinsic Value of Jindal Steel & Power Ltd as of December 26, 2024 is: 2,782.79

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 26, 2024, Jindal Steel & Power Ltd is Undervalued by 195.10% compared to the current share price 943.00

Last 5 Year EPS CAGR: 123.40%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 25.42, which is a positive sign.
  2. The company has higher reserves (32,195.62 cr) compared to borrowings (31,436.54 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of 8.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 93.33, which may not be favorable.
  3. The company has not shown consistent growth in sales (32.23) and profit (-20.46).

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 Steel & Power Ltd:
    1. Net Profit Margin: 11.88%
      • 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: 12.01% (Industry Average ROCE: 19.34%)
      • 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%: 13.4% (Industry Average ROE: 18.46%)
      • 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): 5.59
      • 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: 0.66
      • 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: 19 (Industry average Stock P/E: 30.88)
      • 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: 0.35
      • 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 Steel & Power Ltd. is a Public Limited Listed company incorporated on 28/09/1979 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L27105HR1979PLC009913 and registration number is 009913. Currently Company is involved in the business activities of Manufacture of structural metal products. Company’s Total Operating Revenue is Rs. 49431.45 Cr. and Equity Capital is Rs. 101.07 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Sponge IronO.P. Jindal Marg, Hissar Haryana 125005jsplinfo@jindalsteel.com
http://www.jindalsteelpower.com
Management
NamePosition Held
Mrs. Savitri JindalChairman Emeritus
Mr. Naveen JindalChairman
Mr. Bimlendra JhaManaging Director
Mr. Sabyasachi BandyopadhyayWhole Time Director
Mr. Damodar MittalWhole Time Director
Ms. Kanika AgnihotriIndependent Director
Mr. Rohit KumarIndependent Director
Mrs. Shivani Wazir PasrichIndependent Director
Dr. Bhaskar ChatterjeeIndependent Director
Mr. Sunjay KapurIndependent Director

FAQ

What is the latest intrinsic value of Jindal Steel & Power Ltd?

The latest intrinsic value of Jindal Steel & Power Ltd as on 26 December 2024 is ₹1245.67, which is 32.10% higher than the current market price of ₹943.00. The stock has a market capitalization of 96,220 Cr. and recorded a high/low of 1,097/688 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹47,240 Cr and total liabilities of ₹82,771 Cr.

What is the Market Cap of Jindal Steel & Power Ltd?

The Market Cap of Jindal Steel & Power Ltd is 96,220 Cr..

What is the current Stock Price of Jindal Steel & Power Ltd as on 26 December 2024?

The current stock price of Jindal Steel & Power Ltd as on 26 December 2024 is 943.

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

In FY 2024-2025, the High / Low of Jindal Steel & Power Ltd stocks is 1,097/688.

What is the Stock P/E of Jindal Steel & Power Ltd?

The Stock P/E of Jindal Steel & Power Ltd is 19.0.

What is the Book Value of Jindal Steel & Power Ltd?

The Book Value of Jindal Steel & Power Ltd is 464.

What is the Dividend Yield of Jindal Steel & Power Ltd?

The Dividend Yield of Jindal Steel & Power Ltd is 0.21 %.

What is the ROCE of Jindal Steel & Power Ltd?

The ROCE of Jindal Steel & Power Ltd is 13.2 %.

What is the ROE of Jindal Steel & Power Ltd?

The ROE of Jindal Steel & Power Ltd is 14.1 %.

What is the Face Value of Jindal Steel & Power Ltd?

The Face Value of Jindal Steel & Power 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 Steel & Power 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