Jindal Saw Ltd - Stock Valuation and Financial Performance

BSE: 500378 | NSE: JINDALSAW | Steel & Iron Products | Small Cap

Jindal Saw Share Price

417.60 -17.55 -4.03%
as on 18-Mar'24 16:59

DeciZen - make an informed investing decision on Jindal Saw

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Jindal Saw stock performance -

mw4me loader
P/E Ratio (SA):
9.32
Market Cap:
13,352.9 Cr.
52-wk low:
135.6
52-wk high:
558.3

Is Jindal Saw Ltd an attractive stock to invest in?

1. Is Jindal Saw Ltd a good quality company?

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

2. Is Jindal Saw Ltd undervalued or overvalued?

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

3. Is Jindal Saw Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Jindal Saw 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 Saw:

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 Saw Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 5%6%6%5.8%6.6%7.5%9.5%5%5.6%7.7%-
Value Creation
Index
-0.7-0.6-0.6-0.6-0.5-0.5-0.3-0.6-0.6-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5,5106,6046,1205,6787,3109,82910,1298,63211,02215,28217,562
Sales YoY Gr.-19.9%-7.3%-7.2%28.7%34.5%3%-14.8%27.7%38.7%-
Adj EPS 7.110.18.79.911.613.720.17.811.316.144.8
YoY Gr.-42.2%-13.7%13.9%16.5%18.5%46.2%-60.9%44.5%41.7%-
BVPS (₹) 140.4194.3174.1174184.9199.1214.6223.2234.2254.6302.1
Adj Net
Profit
1962932663183704396412513625131,432
Cash Flow from Ops. 392-1995441,3175731,2701,4651,3441911,338-
Debt/CF from Ops. 8.8-22.89.23.27.83.32.62.621.82.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 12%15.9%14.7%38.7%
Adj EPS 9.5%6.8%-7.2%41.7%
BVPS6.8%6.6%5.9%8.7%
Share Price 23.8% 35.3% 77.1% 169.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
5.26.24.95.96.57.29.73.656.616.1
Op. Profit
Mgn %
11.313.413.316.514.412.51310.710.18.914.7
Net Profit
Mgn %
3.64.44.45.65.14.56.32.93.33.48.2
Debt to
Equity
0.90.80.90.80.80.70.60.50.60.4-
Working Cap
Days
24123928428524322222926922618987
Cash Conv.
Cycle
1391381721751441129198897525

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 16.10%

Sales growth is growing at healthy rate in last 3 years 14.70%

Sales growth is good in last 4 quarters at 26.75%

Net Profit has been subdued in last 3 years -7.16%

Latest Financials - Jindal Saw Ltd.

Standalone Consolidated
TTM EPS (₹) 44.8 47.7
TTM Sales (₹ Cr.) 17,562 20,720
BVPS (₹.) 302.1 298.5
Reserves (₹ Cr.) 9,595 9,480
P/BV 1.38 1.40
PE 9.32 8.76
From the Market
52 Week Low / High (₹) 135.60 / 558.30
All Time Low / High (₹) 3.31 / 558.30
Market Cap (₹ Cr.) 13,353
Equity (₹ Cr.) 64
Face Value (₹) 2
Industry PE 24.3

Management X-Ray of Jindal Saw:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *3.823.823.203.200.870.870.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Jindal Saw

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
Sales5,5106,6046,1205,6787,3109,82910,1298,63211,02215,282
Operating Expenses 4,8915,7965,3134,7496,2738,6158,8317,7089,90913,942
Manufacturing Costs7461,1598498007338858309001,2441,499
Material Costs3,3833,6233,4913,0084,2806,2716,2775,1106,6009,821
Employee Cost 292368427465513577683685770877
Other Costs 4696465454757468821,0421,0131,2941,745
Operating Profit 6198088079301,0371,2141,2989231,1141,341
Operating Profit Margin (%) 11.2%12.2%13.2%16.4%14.2%12.4%12.8%10.7%10.1%8.8%
Other Income 85188306267227302254334271487
Interest 226326494380420496516404369529
Depreciation 213205227229256281310346372374
Exceptional Items -740-133300-1350-70
Profit Before Tax 191464258591588739592507637924
Tax 4717936204194241-3178232215
Profit After Tax 144285221386394498594329405709
PAT Margin (%) 2.6%4.3%3.6%6.8%5.4%5.1%5.9%3.8%3.7%4.6%
Adjusted EPS (₹)5.29.87.312.112.315.618.610.312.722.2
Dividend Payout Ratio (%)19%10%14%8%10%13%11%19%16%14%

Balance Sheet

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

Equity and Liabilities

Shareholders Fund 3,8825,6365,3025,5645,9136,3666,8637,1387,4898,140
Share Capital 55586164646464646464
Reserves 3,8275,5785,2415,5005,8496,3026,7997,0747,4258,076
Minority Interest0000000000
Debt3,4054,2504,6263,7534,2193,9423,5052,9443,8202,873
Long Term Debt1,8851,7962,1801,7531,7961,6191,3271,3921,031786
Short Term Debt1,5192,4542,4462,0002,4222,3232,1791,5522,7892,087
Trade Payables3955692972913791,5731,2461,6881,3372,841
Others Liabilities 8161,5161,3061,3291,2721,4271,5382,1651,9142,302
Total Liabilities 8,49711,97011,53210,93711,78313,30713,15213,93514,56116,156

Fixed Assets

Gross Block4,7045,5126,1876,4356,5016,8057,3837,6317,9058,125
Accumulated Depreciation1,1622054306628631,1081,4101,7172,0512,305
Net Fixed Assets3,5415,3075,7575,7735,6385,6975,9735,9135,8545,820
CWIP 18742220465108231205157166206
Investments 7889596755916496656387161,0251,270
Inventories1,3872,1271,7971,7991,9512,7462,1942,4543,0713,351
Trade Receivables1,3371,4991,5851,2081,6431,8621,5331,7311,4443,168
Cash Equivalents 40182124404211125748751763
Others Assets1,2171,4741,3891,4601,7531,9952,3522,4772,4852,277
Total Assets 8,49711,97011,53210,93711,78313,30713,15213,93514,56116,156

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 392-1995441,3175731,2701,4651,3441911,338
PBT 265464258471548742592507637924
Adjustment 396534593500539495806505586510
Changes in Working Capital -119-1117-241440-453177223410-89441
Tax Paid -33-80-66-93-60-143-155-78-138-138
Cash Flow From Investing Activity -323-763-451-111-454-487-393-355-288-47
Capex -376-391-197-151-194-444-338-251-323-188
Net Investments 55-258-293125000-63570
Others -2-11439-85-260-44-55-41-22140
Cash Flow From Financing Activity -921,103-168-1,278-137-731-1,001-748161-1,689
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 36515692-292-127-144-175-127-347-357
Interest Paid -222-245-324-353-384-448-475-388-345-500
Dividend Paid -32-32-36-38-35-49-77-63-63-63
Others -2031,224100-594410-90-274-171917-769
Net Cash Flow -22141-76-72-17527224165-398
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)3.864.057.116.878.118.994.75.549.08
ROCE (%)5.829.027.359.7110.0411.8210.448.549.0212.68
Asset Turnover Ratio0.690.670.540.530.650.780.770.640.771
PAT to CFO Conversion(x)2.72-0.72.463.411.452.552.474.090.471.89
Working Capital Days
Receivable Days81758986716561695355
Inventory Days9093113111938789989177
Payable Days474945362957821058478

Jindal Saw Ltd Stock News

Jindal Saw Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Jindal Saw on 18-Mar-2024 16:59 is ₹417.6.
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 18-Mar-2024 16:59 the market cap of Jindal Saw stood at ₹13,352.9.
The latest P/E ratio of Jindal Saw as of 18-Mar-2024 16:59 is 9.32.
The latest P/B ratio of Jindal Saw as of 18-Mar-2024 16:59 is 1.38.
The 52-week high of Jindal Saw is ₹558.3 and the 52-week low is ₹135.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Jindal Saw is ₹17,562 ( Cr.) .

About Jindal Saw Ltd

Jindal SAW is a part of the $10 billion OP Jindal group, one of the country’s topmost industry houses and the foremost indigenous steel producers and exporters. It started operation in the year 1984, when it became the first company in India to manufacture submerged arc welded (SAW) pipes using the internationally acclaimed U-O-E technology.

Jindal SAW is in a commanding position in India's tubular market, being the undisputed leader with a turnover in excess of Rs 7,000 crore.

With integrated facilities at multiple locations and an ever expanding market opportunity, Jindal SAW diversified from a single product company to a multi-product company, manufacturing large-diameter submerged arc pipes and spiral pipes and bends for the energy transportation sector; carbon, alloy and stainless steel seamless pipes and tubes manufactured by conical piercing process used for industrial applications; and ductile iron (DI) pipes for water and sewage transportation. Besides these, the company also provides various value-added products like pipe coatings, bends and connector castings to its clients.

At the company, the business operations are highly structured with three strategic business units: large diameter pipes, seamless tubes, and DI (ductile iron) pipes. Every SBU has its own dedicated sales and marketing targets and operations.

In 2006, Jindal SAW realigned itself by disposing off non-core business in the US and focused its energies on the Indian growth story by launching several new initiatives.

The company has consistently created value by creating low-cost capacities in capital-intensive industries in businesses largely overlooked by other corporate. Jindal SAW has recently launched its Jindal ITF (infrastructure, transportation, fabrication) subsidiary.

Products of the company:

Large diameter pipes -

   • Line pipes    • Anti-corrosion coatings   • Conversion casings   • Hot-pulled induction bends

Ductile iron (DI) pipes -

   • Seamless tubes

Milestones:

  •  1986: Country’s first LSAW pipes (U-O-E) mill for line pipes commissioned at Kosi Kalan with API and ISO accreditation. 
  • 1992: Bevelling unit commissioned at Kosi Kalan. SAW pipes, USA incorporated and commissioned. 
  • 1993: First major supply of NACE pipes for offshore line.  
  • 1994: Seamless pipes and tubes division commissioned at Nashik. 3LPE/FBE coating plant commissioned at Kosi Kalan.  
  • 1995: First export order is executed for line pipes. 
  • 1996: CTE mobile coating plant commissioned at Kosi Kalan.  
  • 1997: Hot induction bends unit established at Kosi Kalan. Start-up of four-meter-wide plate mill at Baytown, USA. 
  • 1999: Port-based 100% export oriented LSAW & HSAW line pipe plants commissioned at Mundra with API and ISO accreditation.  internal coating plant  commissioned  at Kosi Kalan. 
  • 2000: 3LPE/FBE coating plant commissioned at Mundra. Internal coating plant commissioned at Mundra. 
  • 2002: Concrete weight coating plant re-commissioned at Mundra. Bevelling unit commissioned at Mundra.  
  • 2003: Additional plant for 3LPE/FBE commissioned at Mundra.  
  • 2004: Third LSAW manufacturing facility commissioned at Samaghogha near Port Mundra with accreditation from API and ISO.  
  • 2005: Start-up of integrated pipe unit ductile iron pipe manufacturing plant of 200,000 MT per annum capacity along with blast furnace of 250,000 MT per annum capacity and a coke-oven plant.
  • 2009- Commissioning of seventh Pipe mill manufacturing LSAW using JCO forming in Nanakapaya - Port Mundra with capacity of 300,000 MT per annum
  • 2010
  • Jindal SAW Ltd receives Environment Clearance for its Dhedwas Mine in Bhilwara, Rajasthan.
  • 2011
  • Commissioning of 8th Pipe mill manufacturing HSAW (Spiral) pipe at Kosi Kalan, Mathura, U.P. with capacity of 150,000 MT per annum This mill is commissioned to cater to the water sector.



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