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Jindal Steel & Power Ltd Stock Analysis

Large Cap
Evaluated by 4758 users | BSE: 532286 | NSE: JINDALSTEL |
Steel/Sponge Iron/Pig Iron

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Jindal Steel & Power Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 14.22%10.04%5.96%3.58%-0.66%0.8%2.59%3.33%4.12%11.11%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 18,20919,80719,28619,35918,37121,05127,38339,37236,91746,90242,013
Y-o-Y Gr. Rt.-8.8%-2.6%0.4%-5.1%14.6%30.1%43.8%-6.2%27%-
Adjusted EPS (Rs.) 43.3435.2920.852.97-32.12-21.78-9.27-6.63-0.7346.1134.23
Y-o-Y Gr. Rt.--18.6%-40.9%-85.8%-1181.5%NANANANANA-
Book Value per Share (Rs.) 193.74227.35246.02229.74354.35328.23313.7331.01315.06311.91336.56
Adjusted Net Profit 4,0523,2991,907271-2,939-1,993-897-642-74.64,7033,492
Net Op. Cash Flow (Rs. Cr.) 3,9223,5224,5801,1824,3336,8507,7249,0278,81411,961-
Debt to Cash Flow from Ops 4.366.997.9438.6610.86.695.564.384.182.45-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Jindal Steel & Power Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  10 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.1%20.6%19.7%27%
Adjusted EPS 0.7%NANANA
Book Value per Share 5.4-2.5-0.2-1
Share Price -1.1% 43% 39.7% 137.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 25.1516.768.71.24-10.99-6.38-2.97-2.06-0.2314.7110.56
Operating Profit Margin (%) 38.953429.9129.8918.4822.6124.1521.2321.4132.839.94
Net Profit Margin (%) 22.4616.679.80.49-16.65-10.7-4.06-3.58-0.9911.388.31
Debt to Equity 0.941.161.622.171.441.531.411.231.150.92-
Working Capital Days 205219220215238222199132141101-
Cash Conversion Cycle 384448494429291791-
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Corporate Governance What do we look at?
Based on our evaluation, we find that the Management Quality of this company is Below Average with respect to its interest toward minority shareholders.
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Based on our evaluation, we find that the Management Quality of this company is Below Average with respect to its interest toward minority shareholders.
Entity Percentage Holding
Promoters 60.47%
Institutions 25.77%
Non-Institutions 13.76%
Pledged *54.1064.8568.7265.5874.8057.2850.3747.7641.6539.52
* Pledged shares as % of Promoter's holding (%)
Past 10 year’s financial track record indicates that that Jindal Steel & Power Ltd is a below average quality company.

Jindal Steel & Power Ltd's earnings have grown by 0%, whereas share price has appreciated 43% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Jindal Steel & Power Ltd share price has declined -1.1% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis by Moneyworks4me indicates that Jindal Steel & Power Ltd is a below average long term investment. However, you need to ensure you buy at a right price to earn good returns.

Led by Mr Naveen Jindal, the youngest son of the legendary Shri O.P. Jindal, Jindal Steel & Power Ltd. (JSPL) produces economical and efficient steel and power through backward and forward integration. JSPL’s business operations span across the various states in India, where it operates some of India’s most advanced steel manufacturing and power generation capacities of global scale. The company has a well-spread out installed

Led by Mr Naveen Jindal, the youngest son of the legendary Shri O.P. Jindal, Jindal Steel & Power Ltd. (JSPL) produces economical and efficient steel and power through backward and forward integration. JSPL’s business operations span across the various states in India, where it operates some of India’s most advanced steel manufacturing and power generation capacities of global scale. The company has a well-spread out installed finished steel capacity prudently spread over Bar Mills, Plate Mills, Rail and Universal Beam Mill (RUBM), Medium & Light Structural Mill (MLSM), and Wire Rod Mill. Jindal Steel & Power Limited (JSPL) is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.

The company endeavours to strengthen India's industrial base by aiding infrastructural development, through sustainable development approaches and inclusive growth. It deploys its resources to improve infrastructure, education, health, water, sanitation, environment and so on in the areas it operates in.

Business area of the company

JSPL is one of India’s fastest growing and largest integrated steel manufacturers, significantly present in steel, power generation and infrastructure segments and catering to a large part of India's domestic energy and infrastructure requirement.

Products and services offered by the company:

Jindal Steel and Power products are energised by the buoyancy of innovation that enables the distinction of being a trailblazer. Customisation is at the core of all product development and global technology excellence ensures the best in class offerings for the valued customers. The company's continuous growth and enhanced capabilities stand testimony of the ceaseless drive for excellence.

  • Rails
  • Parallel Flange Beams and Columns
  • Plates And Coils
  • Angles And Channels
  • Wire Rods
  • Round Bars
  • Fabricated Sections
  • Jindal Speedfloor
  • Semi-Finished Products
  • Power
  • Minerals
  • Jindal Panther Cement
  • Sponge Iron
  • Construction Solutions Business

Awards/ Achievements:

2013

  • Greentech Platinum CSR Award 2013.

2015

  • International Safety Award' from British Safety Council, UK.

2016

  • Jindal Steel wins prestigious CSR award.

2019

  • ‘Best Learning & Development Team of the Year’ award to JSPL at The Learning & Development World Summit 2019 held in October 2019 at Bengaluru.
  • Par Excellence & Excellent Awards to Kaizen Teams of JSPL at 33rd National Convention on Quality Concepts (NCQC 2019) in December 2019 at IIT (BHU) Varanasi.
  • Gold Award (Highest Category) at the International Convention on QC Circles-2019 (ICQCC) held in September 2019 in Tokyo, Japan to The Kaizen team- Tech Army of JSPL, Barbil.
  • Bronze award in Metal & Mining Sector by Apex India Occupational Health and Safety Excellence Award-2019 at Goa to JSPL, Barbil.
  • Mining Innovation Award to TRB Iron Ore Mines, Tensa at Seminar on Mining organised IME Journal in September 2019 at Hospet/ Belary/ Karnataka.

2020

  • Total Productive Maintenance (TPM) Award for the Excellence in Consistent TPM Commitment from the Japan Institute of Plant Maintenance (JIPM), Tokyo, Japan in March 2020.
  • Golden Peacock CSR Award 2019 at 14th International Conference on CSR by the Institute of Directors (IOD) at Mumbai (March 2020).

Milestones

2011

  • Jindal Shadeed plant was dedicated to the Nation, by H.E. Sheikh Sa’ad Bin Mohammed bin Said al Mardhouf al Sa’adi, Minister of Commerce and Industry, Sultanate of Oman. Jindal Shadeed Iron and Steel LLC (JSIS) is a wholly owned subsidiary of the Naveen Jindal-led Jindal Steel and Power Limited (JSPL), India.
  • Jindal Steel & Power d (JSPL) and Jindal Power (JPL)’s Annual Reports 2009-10, won Gold Awards at ‘The League of American Communications Professionals (LACP) Vision Awards’ - the world’s most prestigious contest in the domain of corporate reporting. While the JSPL Annual Report won the award in the ‘Materials’ category, the JPL Annual Report bagged the award in the ‘Energy Equipment and Services’ category.
  • Hon’ble Chairperson, Co-ordination Committee, Shri Shibu Soren and Hon'ble Chief Minister of Jharkhand, Shri Arjun Munda dedicated to the Nation the second unit of the 6 Million Tonne Steel Plant (the 1.2 MTPA Bar Mill) of Jindal Steel and Power Limited (JSPL) at Patratu, in Ramgarh district, at a glittering ceremony.

2012

  • Commences commercial operation of 4th Unit of 135 MW power at Dongamahua, Raigarh (Chhattisgarh).Acquires CIC's Energy Corp. Canada having 6 Billion Tonn coal resources in Botswana.

2013

  • JSPL acquires over 30% stake in Gujarat NRE Coking Coal.
  • JSPL acquires majority stake in Gujarat NRE.

2014

  • Jindal Shadeed Commissions 2 MTPA Integrated Steel Plant in Oman.
  • Jindal Wins Again On Bolivia Project.
  • Jindal Steel and Power launches new creative identity Lohe se bana, Loha sa bana -Jindal Vindicated On Bolivia Project By International Tribunal.

2015

  • Jindal Steel and Power Foundation Joins Hands With Habitat For Humanity India To Help In J&K Disaster Relief.
  • Jindal Steel and Power launches new creative identity- ‘Lohe se bana, Loha sa bana’.

2016

  • Jindal Steel and Power sets up India’s First Plant to manufacture Head Hardened Rails.

2017

  • Jindal Steel and Power completes 6 MTPA Integrated Steel Plant at Angul, at an investment of Rs 33,000 crore.

2019

  • JSPL emerges as highest bidder for Gare Palma IV/1 coal block in Chhattisgarh.
  • JSPL step down subsidiary -- Jindal Mining SA Proprietary (JMSA), a company incorporated in South Africa has turned around and reported cash profits in the completed quarter ending September 2019 from South Africa.
  • JSPL commission’s 4th coke oven battery at Angul plant.

2020

  • JSPL has achieved quarterly production milestones in Q3 of Financial Year 2019-20 across India & Oman. The company has witnessed the highest ever quarterly production of 1.61 million tonnes of steel in Q3 FY19-20.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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