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Jindal Saw Ltd Stock Analysis

Small Cap
Evaluated by 1508 users | BSE: 500378 | NSE: JINDALSAW |
Steel & Iron Products
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)...

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 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
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 6.96%5.79%4.95%5.95%5.98%5.29%6.73%7.54%9.45%5%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 5,1985,6175,5106,6046,1205,6967,3159,82910,1298,6328,632
Y-o-Y Gr. Rt.-8.1%-1.9%19.9%-7.3%-6.9%28.4%34.4%3%-14.8%-
Adjusted EPS (Rs.) 11.859.97.1110.118.738.2411.9513.7820.067.8410.29
Y-o-Y Gr. Rt.--16.5%-28.2%42.2%-13.7%-5.6%45%15.3%45.6%-60.9%-
Book Value per Share (Rs.) 128.46134.83140.38194.32174.09174184.92199.07214.62223.24223.24
Adjusted Net Profit 327273196293266263382441641251329
Net Op. Cash Flow (Rs. Cr.) -207313392-1995441,3175731,2701,4651,332-
Debt to Cash Flow from Ops -12.1710.458.81-22.849.163.157.753.292.62.65-
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 Saw Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.8%7.1%5.7%-14.8%
Adjusted EPS -4.5%-2.1%-13.1%-60.9%
Book Value per Share 6.35.16.54
Share Price 1.5% 22.8% 18.2% 154.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 8.657.515.166.164.864.856.667.189.73.584.61
Operating Profit Margin (%) 12.3510.7411.2613.413.3115.2314.1212.5212.9810.7111.34
Net Profit Margin (%) 6.34.873.564.444.354.625.224.486.332.93.81
Debt to Equity 0.710.880.890.810.940.750.750.660.550.490.2
Working Capital Days 264244241239284284243222229269189
Cash Conversion Cycle 174152139138172175144112919863
Entity Percentage Holding
Promoters 63.02%
Institutions 11.21%
Non-Institutions 25.77%
Others 0.01%
Pledged *3.823.823.823.823.820.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Jindal Saw Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Jindal Saw Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Jindal Saw Ltd's performance infers:

Jindal Saw Ltd earnings have declined by -2.1%, whereas share price has appreciated 22.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Jindal Saw Ltd share prices over the last 10 years. Here is what we found out:

Jindal Saw Ltd share price has appreciated -0.7% annually over the past ten years.

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.

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.



Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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