Check Before You Invest : Jindal Capital Ltd

BSE: 530405 NSE: ISIN: INE356F01017

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Jindal Capital Ltd belong to?

Jindal Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Jindal Capital Ltd a good quality company?

Jindal Capital Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Jindal Capital Ltd undervalued or overvalued?

Jindal Capital Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Jindal Capital Ltd a good buy now?

Jindal Capital Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Jindal Capital Ltd?

Jindal Capital Ltd Operating Income growth is 30.24% for FY-2025, which is above its 5-year CAGR of -20.8%, indicating faster growth.

Q.2 Return on Assets of Jindal Capital Ltd?

Jindal Capital Ltd Return on Asset is 8%, which is above its 5-year historical median of 5.2%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	36.83	6.64
PPOP%	20.65	17.46
RoA%	8	5.2

Q.3 Return on Equity (ROE) of Jindal Capital Ltd?

Jindal Capital Ltd Return on Equity is 13.2% for FY-2025, which is above its 5-year historical median of 5.4%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Jindal Capital Ltd?

Jindal Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 20.65% for FY-2025, which is above its 5-year median(17.46%), indicating increasing margins.

Q.5 Net Profit Margin of Jindal Capital Ltd?

Jindal Capital Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 36.83% for FY-2025, which is above its 5-year median( 6.64%), indicating increasing margins.

Q.6 Total Asset growth of Jindal Capital Ltd?

Jindal Capital Ltd Total Asset growth is 29.61% for FY-2025, which is above its 5-year CAGR of 20.03%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Jindal Capital Ltd?

Promoters hold 71.34% of the Jindal Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Jindal Capital Ltd vs Industry Peers?

Jindal Capital Ltd AUM CAGR is 20.03%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Jindal Capital Ltd vs industry peers

Jindal Capital Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	36.83	9.95
PPOP%	20.65	-13.4
RoA%	8	0.8

Q.3 Operating efficiency of Jindal Capital Ltd vs industry peers?

Jindal Capital Ltd ROCE (9) is above the industry median of (1.9); while the current ROE (5.4) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	36.83	9.95
PPOP%	20.65	-13.4
RoA%	8	0.8
ROCE%	15.2	1.9
ROE%	13.2	1.2

Valuation & price assessment

Q.1 Stock return of Jindal Capital Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 15.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	15.9%	25.3%	14.3%	-19.6%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	41.83	36.53	33.72
Price to Book	2.04	2.31	0.94
Price to Sales	6.88	6.02	12.44
EV to EBITDA	15.9	18.28	9.97

Q.4 Valuation ratios of Jindal Capital Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.04% is lower than its historical median of 2.31%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Jindal Capital Ltd return on invested capital (ROIC) is 11.17% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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