Check Before You Invest : Jindal Stainless Ltd

Q: Which industry/sub-sector does Jindal Stainless Ltd belong to?

Jindal Stainless Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q: Is Jindal Stainless Ltd a good quality company?

Jindal Stainless Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Jindal Stainless Ltd undervalued or overvalued?

Jindal Stainless Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 19.49, Historic Median: 17.08. Price to Book, Current: 3.15, Historic Median: 3.34. Price to Sales, Current: 1.45, Historic Median: 1.39. EV to EBITDA, Current: 11.28, Historic Median: 11.86

Q: Is Jindal Stainless Ltd a good buy now?

Jindal Stainless Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Jindal Stainless Ltd?

Jindal Stainless Ltd revenue growth is 1.9% for FY-2025, which is below its 5-year CAGR of 24.87%, indicating slower growth.

Q: Gross Profit margin of Jindal Stainless Ltd?

Jindal Stainless Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.7% for FY-2025, which is in line with its 5-year median of 10.7%, indicating stable margins.

Q: Operating Profit Margin of Jindal Stainless Ltd?

Jindal Stainless Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.48% for FY-2025, which is in line with its 5-year median of 11.69% indicating stable margins.

Q: Net Profit Margin of Jindal Stainless Ltd?

Jindal Stainless Ltd Net Profit Margin is 6.36% for FY-2025, is in line with its 5-year median of 6.36%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 10.7, Historic Median: 10.7. Operating Profit Margin (%), Current: 11.48, Historic Median: 11.69. Net Profit Margin (%), Current: 6.36, Historic Median: 6.36

Q: Return on Asset of Jindal Stainless Ltd?

Jindal Stainless Ltd Return on Asset is 7.5%, which is below its 5-year historical median of 8.39%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Jindal Stainless Ltd?

Jindal Stainless Ltd Return on capital employed is 18.25% for FY-2025, which is below its 5-year historical median of 20.97%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Jindal Stainless Ltd

Snapshot

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

Jindal Stainless Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

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

Jindal Stainless Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Jindal Stainless Ltd undervalued or overvalued?

Jindal Stainless Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	19.49	17.08
Price to Book	3.15	3.34
Price to Sales	1.45	1.39
EV to EBITDA	11.28	11.86

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

Jindal Stainless Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Jindal Stainless Ltd?

Jindal Stainless Ltd revenue growth is 1.9% for FY-2025, which is below its 5-year CAGR of 24.87%, indicating slower growth.

Q.2 Gross Profit margin of Jindal Stainless Ltd?

Jindal Stainless Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.7% for FY-2025, which is in line with its 5-year median of 10.7%, indicating stable margins.

Q.3 Operating Profit Margin of Jindal Stainless Ltd?

Jindal Stainless Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.48% for FY-2025, which is in line with its 5-year median of 11.69% indicating stable margins.

Q.4 Net Profit Margin of Jindal Stainless Ltd?

Jindal Stainless Ltd Net Profit Margin is 6.36% for FY-2025, is in line with its 5-year median of 6.36%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	10.7	10.7
Operating Profit Margin (%)	11.48	11.69
Net Profit Margin (%)	6.36	6.36

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jindal Stainless Ltd?

Jindal Stainless Ltd Return on Asset is 7.5%, which is below its 5-year historical median of 8.39%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jindal Stainless Ltd?

Jindal Stainless Ltd Return on capital employed is 18.25% for FY-2025, which is below its 5-year historical median of 20.97%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Jindal Stainless Ltd?

Jindal Stainless Ltd Return on equity is 16.13% for FY-2025, which is below its 5-year historical median of 20.5%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Jindal Stainless Ltd?

Jindal Stainless Ltd Cash conversion cycle is 24 days, below its 5-year historical median of 26 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.22	1.35
ROE (%)	16.13	20.5
ROCE (%)	18.25	20.97
Cash Conversion Cycle	24 days	26 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Jindal Stainless Ltd?

Jindal Stainless Ltd Debt-to-Equity ratio is 0.38, which is above the industry average of 0.31, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Jindal Stainless Ltd?

Jindal Stainless Ltd Debt to cash flow from operations is 1.33, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Jindal Stainless Ltd?

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

Promoters hold 62.05% of the Jindal Stainless Ltd, with 0.51% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Jindal Stainless Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Jindal Stainless Ltd vs industry peers?

Jindal Stainless Ltd revenue CAGR is 24.87%, compared to the industry median CAGR of 21.78%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	1.9	21.8
Gross Profit Growth (%)	0.6	24.3
Operating Profit Growth (%)	0	20.2
Net Profit Growth (%)	-7.2	24.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.22	1.35
ROE (%)	16.13	20.5
ROCE (%)	18.25	20.97
Cash Conversion Cycle (days)	24.24	26

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 46.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	46.2%	50.5%	37.3%	30.3%

Q.2 Valuation ratios of Jindal Stainless Ltd vs historical?

The current P/E ratio of 19.49 is higher than its historical median of 17.08, indicating that the stock is trading above its historical average valuation.

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	19.49	17.08	17.36
Price to Book	3.15	3.34	1.63
Price to Sales	1.45	1.39	0.74
EV to EBITDA	11.28	11.86	10.05

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Check Before You Invest : Jindal Stainless Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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