Jindal Stainless Ltd - Stock Valuation and Financial Performance

BSE: 532508 | NSE: JSL | Steel & Iron Products | Mid Cap

Jindal Stainless Share Price

701 2.65 0.38%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Jindal Stainless

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Jindal Stainless stock performance -

mw4me loader
P/E Ratio (CD):
19.31
Market Cap:
57,504.6 Cr.
52-wk low:
255
52-wk high:
728.2

Is Jindal Stainless Ltd an attractive stock to invest in?

1. Is Jindal Stainless Ltd a good quality company?

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

2. Is Jindal Stainless Ltd undervalued or overvalued?

The key valuation ratios of Jindal Stainless Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Jindal Stainless Ltd a good buy now?

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

10 Year X-Ray of Jindal Stainless:

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 Stainless 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -1.3%0.6%1.6%6.2%9.6%7.8%6.9%10.4%30.9%15.4%-
Value Creation
Index
-1.1NA-0.9-0.6-0.3-0.4-0.5-0.31.30.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 12,8696,9487,1449,27911,63813,55712,95112,18832,73335,69738,874
Sales YoY Gr.--46%2.8%29.9%25.4%16.5%-4.5%-5.9%168.6%9.1%-
Adj EPS -49.8-26.2-22.81.66.92.51.3754.82536.2
YoY Gr.-NANANA336.5%-64.3%-48.8%453.5%679.9%-54.5%-
BVPS (₹) 2.5-7.655.343.550.152.755.864.7131.3144.9169.1
Adj Net
Profit
-1,073-593-52863.6333119623422,8812,0552,978
Cash Flow from Ops. 9585549665,1151,4521,4191,1801,3081,0383,096-
Debt/CF from Ops. 12.520.410.71.23.53.13.32.43.81.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 12%25.1%40.2%9.1%
Adj EPS NA29.2%169.9%-54.5%
BVPS56.9%23.7%37.5%10.4%
Share Price 32.9% 77.4% 114% 164.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-153.1-455.4-55.23.615.54.72.311.644.218.923
Op. Profit
Mgn %
7.95.3812.611.58.68.811.714.89.912.4
Net Profit
Mgn %
-8.3-8.5-7.40.72.90.90.52.88.95.77.7
Debt to
Equity
208.1-65.88.13.42.11.71.410.60.3-
Working Cap
Days
1813233332071191021081209213666
Cash Conv.
Cycle
5698592727211816263919

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 40.21%

Net Profit is growing at healthy rate in last 3 years 169.87%

Debt to equity has declined versus last 3 years average to 0.32

Return on Equity has declined versus last 3 years average to 23.00%

Sales growth is not so good in last 4 quarters at 9.63%

Latest Financials - Jindal Stainless Ltd.

Standalone Consolidated
TTM EPS (₹) 33 36.2
TTM Sales (₹ Cr.) 38,280 38,874
BVPS (₹.) 161.6 169.1
Reserves (₹ Cr.) 13,141 13,758
P/BV 4.32 4.13
PE 21.19 19.31
From the Market
52 Week Low / High (₹) 255.00 / 728.15
All Time Low / High (₹) 14.20 / 728.15
Market Cap (₹ Cr.) 57,505
Equity (₹ Cr.) 164.7
Face Value (₹) 2
Industry PE 26.8

Management X-Ray of Jindal Stainless:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *83.1383.1378.3278.0778.0782.9577.5477.5477.540.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Jindal Stainless

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales12,8696,9487,1449,27911,63813,55712,95112,18832,73335,697
Operating Expenses 11,8636,5816,5718,11310,29712,39311,81110,76427,90332,182
Manufacturing Costs2,3921,2491,6021,8852,1792,6702,6762,3964,9426,042
Material Costs8,5784,8604,5285,7347,5029,1758,5787,80921,33124,472
Employee Cost 310157133154196175186170510509
Other Costs 5833143093404203723713891,1201,159
Operating Profit 1,0063675721,1661,3401,1651,1391,4244,8303,515
Operating Profit Margin (%) 7.8%5.3%8.0%12.6%11.5%8.6%8.8%11.7%14.8%9.8%
Other Income 4955262645334041331197
Interest 1,2959421,030788566637586480344325
Depreciation 728411316325320352425403759724
Exceptional Items -4191,184-402641410200
Profit Before Tax -1,387253-7881165202221656904,1592,774
Tax -210-2323217477932701,050690
Profit After Tax -1,366253-55683346145734193,1092,084
PAT Margin (%) -10.6%3.6%-7.8%0.9%3.0%1.1%0.6%3.4%9.5%5.8%
Adjusted EPS (₹)-63.511.2-24.12.07.23.01.58.658.625.7
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%10%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 57-1711,3431,7882,4652,5912,7173,1516,89711,931
Share Capital 4646468096969797105165
Reserves 11-2181,2971,7082,3692,4952,6203,0546,79211,766
Minority Interest2245691213136736
Debt11,59710,8039,6885,3804,6023,8963,3613,1073,7823,600
Long Term Debt8,5768,0707,3233,3823,5513,1532,7162,5932,6302,792
Short Term Debt3,0212,7322,3641,9981,0527436465141,153808
Trade Payables2,9411,3791,7781,8652,1332,4882,6602,6325,7437,821
Others Liabilities 1,9712,2602,0181,8941,6251,7281,9261,8316,0863,752
Total Liabilities 16,58814,27414,83110,93210,83410,71510,67810,73522,57627,140

Fixed Assets

Gross Block13,5329,7117,3997,4557,5027,8638,1298,17212,19314,240
Accumulated Depreciation3,7522,1595368471,1591,5181,9492,3173,5474,279
Net Fixed Assets9,7807,5526,8636,6096,3426,3456,1815,8558,6469,961
CWIP 1571447029144291558525773
Investments 1814393404439454449456626970
Inventories3,7041,9581,9132,0972,3842,4152,7392,7896,7858,394
Trade Receivables1,6951,0859368909079197059343,8603,658
Cash Equivalents 73488051634569116256931
Others Assets1,1613,4744,5778535555085215261,8782,454
Total Assets 16,58814,27414,83110,93210,83410,71510,67810,73522,57627,140

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 9585549665,1151,4521,4191,1801,3081,0383,096
PBT -968-931-7881165202221656904,1592,774
Adjustment 1,9961,4111,3431,0318368851,016787968873
Changes in Working Capital 3378397399682315-6-181-3232203
Tax Paid 124314-2715-3511-857-754
Cash Flow From Investing Activity -120241,053-31-193-192-188-152-985-2,482
Capex -1572-168-58-195-206-175-162-968-1,648
Net Investments 30158-107-21-7-34-865
Others 34221,206191268171731
Cash Flow From Financing Activity -891-580-1,972-5,106-1,257-1,237-991-1,119101-386
Net Proceeds from Shares 10000255000000
Net Proceeds from Borrowing 200369-650-4,385-143-471-413-696-119269
Interest Paid -1,191-948-958-864-633-461-502-340-325-296
Dividend Paid 0000000000
Others 1-1-363118-531-305-76-82545-359
Net Cash Flow -54-247-212-11237154228
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-196.81N/A-100.625.5116.75.892.7714.2961.8922.13
ROCE (%)-0.74N/A2.069.214.4111.9811.0918.0244.7920.97
Asset Turnover Ratio0.810.480.530.771.091.271.231.1621.46
PAT to CFO Conversion(x)N/A2.19N/A61.634.29.7916.163.120.331.49
Working Capital Days
Receivable Days48694834282423242638
Inventory Days961409274696472815376
Payable Days127162127116979211012472101

Jindal Stainless Ltd Stock News

Jindal Stainless Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Jindal Stainless on 12-Apr-2024 10:20 is ₹701.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 10:20 the market cap of Jindal Stainless stood at ₹57,504.6.
The latest P/E ratio of Jindal Stainless as of 12-Apr-2024 10:20 is 21.19.
The latest P/B ratio of Jindal Stainless as of 12-Apr-2024 10:20 is 4.32.
The 52-week high of Jindal Stainless is ₹728.1 and the 52-week low is ₹255.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Jindal Stainless is ₹38,280 ( Cr.) .

About Jindal Stainless Ltd

Established in 1970, Jindal Stainless Limited (JSL) is one of the largest stainless steel conglomerates in India and ranks amongst the top 10 stainless steel conglomerates in the world. The company has been an industry leader in embarking up on a digital transformation journey by implementing cutting-edge technology solutions in the manufacturing industry. Information Technology has been instrumental in enabling smoother, faster, and transparent processes across multiple divisions of company’s major operations and activities.

Under the gamut of company’s upgraded and newly introduced SAP initiatives, it has successfully implemented integration of barcode devices with SAP for bay-wise tracking of vehicles inside plant resulting in reduced turnaround time, implementation of paperless material receiving (GRN) process for high-value consumables, railway rake container management system to avoid detention charges, and mapping sales and accidental return process in SAP. The company’s presales product, C4C, has been tightly integrated with Hybris Commerce to provide expeditious service and an Assisted Service Module has been activated to aid the Customer Support Team in efficiently addressing the queries of the customers.

Business area of the company

Jindal Stainless is India's largest producer of stainless steel in 200, 300, 400 and duplex stainless steel series. The company’s product range includes stainless steel slab, bloom, coils, plates, sheets, precision strips, blade steel, and coin blanks.

Awards and Accolades

2013-14:

  • Hisar Unit of JSL has been conferred with First Prize in the National Energy Conservation Award - 2013 for its efforts to continuously optimize the consumption of energy for its operation in the Steel Re-rolling Sector. 
  • Hisar Unit of JSL has received 1st Prize in Secondary Steel Plants/Alloy Steel Plants Category in ‘IIM National Sustainability Award’.

2014-15:

  • JSL Jajpur Unit has been received 13th Annual Greentech Safety GOLD Award in Metal & Mining Sector from Greentech Foundation, New Delhi.
  • Received Best Safety & Sustainability Awards from ISSF (International Stainless Steel Forum), Brussels (Belgium).

2015-16:

  • JSL Jajpur has received 16th Annual Greentech Safety GOLD Award-2015 in Metal & Mining Sector from Greentech Foundation, New Delhi. 
  • Received Best Safety & Sustainability Awards from ISSF (International Stainless Steel Forum), Brussels (Belgium).

2016-17:

  • 17th Annual Greentech Environment GOLD Award in Metal & Mining Sector for outstanding achievement in Environmental Management.
  • Fame Excellence Award- 2016 in Health & Safety for Workers category Constituted by Foundation for Accelerated Mass Empowerment, New Delhi.
  • 15th Annual Greentech Safety GOLD Award - 2016 in Metal & Mining Sector, Constituted by Greentech Foundation, New Delhi.
  • Odisha State Safety Conclave Award - 2015 for Best Practices in Safety in Iron & Steel Sector.

2017-18:

  • Awarded the ‘Supplier Excellence Award’ from the Whirlpool - the global leader in Home Appliances.
  • Thyssenkrupp Material Poland, one of the leading distributors of metals and plastics in Poland, awarded JSL for completing ten years of close business collaboration.
  • At the Suzler 2018 Global Supplier Days Event, Singapore, JSL was awarded the ‘Supplier excellence’ award.
  • JSL received the runner-up award in the category of Best Risk Management Practices by Export Credit and Guarantee Corporation of India (ECGC).
  • JSL received Golden Peacock National Training Award for significant achievement in the field of excellence in Training.
  • JSL bagged ‘Best Performance Award’ for Mega Scale Industry during UCCI Expo 2017.

2018-19:

  • The prestigious 17th Annual Greentech Safety Platinum Award-2018 in Metal & Mining Sector for outstanding achievement in Safety Management.
  • Received Apex India Environment Excellence Award 2018 under Gold category in Metal & Mining Sector for outstanding achievement in Environmental Management, organized by Apex India Foundation, New Delhi.
  • EKDKN Exceed Award 2018 under Environment Preservation Category in Steel Sector, organized by ‘Ek Kaam Desh Ke Naam’, New Delhi.
  • The ‘Exceed Award-2018’ in Platinum category for Training Excellence in HR in steel sector.
  • Prestigious ‘18th Annual Green-tech Environment Gold Award-2018’ in Metal & Mining Sector.
  • Bagged two Gold (highest category) awards in International Convention on Quality Control Circles (ICQCC) 2018 at Singapore.

2019-20:

  • GOLD Award under Apex India Safe Workplace Award 2019 in Metal Mining Sector.
  • Fame Environment Excellence Award 2019 (Platinum Award) from FAME Ism (Foundation for Accelerated Mass Empowerment) in Metal & Mining Sector.
  • 19th Annual Greentech Environment Award - 2019 (Gold Award) in Metal & Mining Sector.
  • Gold Award in Chapter Convention on Quality Concepts.
  • Par Excellence Award in National Convention on Quality Concepts (NCQC).
  • First Position in 32nd State Level CII QC Competition.

Milestones

From 1970 to 2000 - Foundation

  • Incorporated in 1970 as Jindal Strips at Hisar, Haryana, India
  • Started manufacturing of stainless steel in 1978
  • Provided seed capital for other ventures of the group
  • Enhanced stainless steel capacity to 200,000 tons

From 2001 to 2005 - Growth

  • Stainless Steel (SS) operations separated from group investments
  • SS capacity ramped up to 400,000 tons
  • Acquired cold rolling facilities in Indonesia
  • Started investments in phases in Orissa
  • Started Service Centre in India

From 2006 to 2010 - Integration

  • SS capacity ramp up at Hisar plant to 720,000 tons.
  • Commissioned phase-I at Orissa- 250,000 tons ferro alloys and 250MW thermal power plant
  • Started investment on Phase-II at Orissa - additional 800,000 tons stainless steel capacity
  • Set up service centre in Spain under a JV

2011 - Focus on cost competitiveness to become global SS player

  • Commissioning of phase-II - additional 800,000 tons stainless steel facilities
  • Overall Stainless Steel melting capacity now at 1,520,000 tons (Hisar 720,000 tons and Orissa 800,000 tons)
  • 2011 -- Pollution Control Award 2011

2013

  • National energy conservation award - 2013

Financial Year 2013-14

  • Development of austenitic stainless steel EQ309L with high ferrite content for use in weld overlay applications.
  • Development of heat resistant austenitic stainless steel UNS S30815 micro-alloyed with rare-earth cerium.
  • Development of highly corrosion resistant super-austenitic stainless steel - 904L
  • Development of new austenitic grades for high temperature applications - 304H and 347H
  • Development of Clad Stainless Steel plates in 350 mm width.
  • Development of high thickness plates of 441 grade for gasket application.
  • Successfully produced hot-rolled duplex stainless steel UNS S32205 down to 5 mm thickness.
  • Complete elimination of bow in duplex plates after plate annealing by suitably modifying processing during annealing and quenching of plates.

Financial Year 2014-15

  • Successful processing of developmental grade 201LN for cryogenic applications. 
  • Successful processing of developmental grade 310S for high temperature applications. 
  • Development of 439 grade for use in elevator segments. 
  • Development of 441 grade for bunker structure manufacturing in thermal power station & auto sector.

Financial Year 2015-16

  • Additions of various Developmental SS grades at Jajpur unit in FY 2015-16 include 310S, 317L, 439, 441, 446, 410S, 410 Jen & Duplex grade - UNS31803/32205. 
  • Products approval received for critical nuclear applications by many pioneer and reputed organizations viz Bhabha Atomic Research Center and Indira Gandhi Centre for Atomic Research.

Financial Year 2016-17

  • Major developmental achievements includes substitution of 2B finish through double 2E+SPM instead of processing at CAPL in grade 304, JT in suitable thickness & applications.
  • Modification of chemistry in grade JSLUDD in order to minimize Sliver-B.
  • Improvement in polishability of grades - JSLSD/ DD.
  • Reduced surface roughness in grade 430 by controlling de-scalling practices and pickling parameters in continuous annealing & pickling line.

Financial Year 2017-18

  • Development of Hairline Finish in 304L grade.
  • Development of Elevator segment in grade 304/441.
  • Successful hot rolling of HNS grade in 4/6mm thickness.
  • Development of 2B from HAPL route in = 3mm thickness in grade X2CrNi12
  • Minimisation of Hole defect in 409L grade by modifying HSM practices.
  • Minimisation of edge crack in grade JT by modifying RHF discharge temperature.
  • Trial taken to improve bell productivity in 410DB grade by modifying bell cycle.
  • Minimisation of edge crack in grade 410S by optimising chemistry and reheating practices.

Financial Year 2018-19

  • Successful development and Hot rolling of defense Grade - JD-1 to 5/5.5/6 mm.
  • Development of Hairline Finish in Grade - 441.
  • Improvement in surface quality in stabilized grade - 439.
  • Hot rolling of slabs of high nitrogen steel grade to 3/4/6 mm in width <1300 mm.
  • Process route optimization and approval for supplying grade - 304/441/J4 in lifts and elevator segment.
  • Establishment of Z-Mill - BA route for low nickel austenitic stainless steel grades for Holloware segment.

Financial Year 2019-20

  • Developed modified chemistry (Cu and Ni) versions of JSLU SD and JSLU DD grades with better drawability for utensil applications.
  • Modification of hot rolling and cold rolling parameters to produce stabilised ferritic grades with improved drawability and formability for automobile exhaust systems.
  • Minimization of yield loss due to edge waviness in HRAP coils of IRSM and X2CrNi12 grades by process modifications in HSM.
  • Successfully produced and supplied 571.70 tonnes of special grades HNS and JD1 for ballistic protection defence applications.
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