Jindal Steel & Power Ltd Stock Analysis

BSE: 532286 | NSE: JINDALSTEL | Steel/Sponge Iron/Pig Iron | Large Cap

BSE Share Price 23-Sep-2022 18:01
425.00 -9.40 (-2.16%)

DeciZen - Make an Informed Decision on Jindal Steel & Power

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Jindal Steel & Power Price Chart

P/E Ratio (CD) :
5.62
Market Cap :
43,353.7 Cr.
52-wk low :
304.2
52-wk high :
577.7
Bole Toh?

1. Is Jindal Steel & Power Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Jindal Steel & Power Ltd is a average quality company.

2. Is Jindal Steel & Power Ltd undervalued or overvalued?

The key valuation ratios of Jindal Steel & Power Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Jindal Steel & Power Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Jindal Steel & Power Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Jindal Steel & Power:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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 performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 10%6%3.6%-0.7%0.8%2.6%3.3%4.1%11.1%17.8%-
Value Creation Index -0.1-0.5-0.7-1.1-0.9-0.8-0.8-0.7-0.00.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 19,80719,28619,35918,37121,05127,38339,37236,91746,90251,08653,521
YoY Gr. Rt. %--2.6%0.4%-5.1%14.6%30.1%43.8%-6.2%27%8.9%-
Adj EPS 35.320.93-32.1-21.8-9.3-6.6-0.746.182.475.5
YoY Gr. Rt. %--40.9%-85.8%-1181.5%NANANANANA78.6%-
BVPS (₹) 227.4246229.7354.4328.2313.7331315.1311.9352.5368.8
Adj Net Profit 3,2991,907271-2,939-1,993-897-642-74.64,7038,4027,705
Cash Flow from Ops. 3,5224,5801,1824,3336,8507,7249,0278,81411,96116,048-
Debt/CF from Ops. 77.938.710.86.75.64.44.22.50.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.1%19.4%9.1%8.9%
Adj EPS 9.9%NANA78.6%
BVPS 51.42.113
Share Price 0% 25.2% 57.5% 18.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 16.88.71.2-11-6.4-3-2.1-0.214.724.920.9
Op. Profit Mgn % 3429.929.918.522.624.221.221.432.829.926.9
Net Profit Mgn % 16.79.80.5-16.7-10.7-4.1-3.6-111.418.414.4
Debt to Equity 1.21.62.21.41.51.41.21.20.90.4-
Working Cap Days 219220215238222199132141101740
Cash Conv. Cycle 4448494429291791-30

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 20.90%

Debt to equity has declined versus last 3 years average to 0.36

Sales growth is good in last 4 quarters at 40.08%

Sales growth has been subdued in last 3 years 9.07%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Jindal Steel & Power Ltd.

Standalone Consolidated
TTM EPS (₹) 120.1 75.5
TTM Sales (₹ Cr.) 51,895 53,521
BVPS (₹.) 460.6 368.8
Reserves (₹ Cr.) 46,882 37,514
P/BV 0.92 1.15
PE 3.54 5.62
From the Market
52 Week Low / High (₹) 304.20 / 577.70
All Time Low / High (₹) 1.85 / 778.00
Market Cap (₹ Cr.) 43,354
Equity (₹ Cr.) 102
Face Value (₹) 1
Industry PE 3.8

Management X-Ray of Jindal Steel & Power :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *74.8057.2850.3747.7641.6539.5239.5040.1039.9847.21
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Jindal Steel & Power

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Jindal Steel & Power Ltd

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.
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