Jindal Saw Ltd Stock Analysis

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

BSE Share Price Jan 20, 18:01
112.20 0.05 (0.04%)

DeciZen - Make an Informed Decision on Jindal Saw

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

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 Undervalued zone.

3. Is Jindal Saw Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong 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.

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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 7%5.8%5%6%6%5.3%6.7%7.5%9.5%5%-
Value Creation Index -0.5-0.6-0.7-0.6-0.6-0.6-0.5-0.5-0.3-0.6-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 5,1985,6175,5106,6046,1205,6967,3159,82910,1298,63210,289
YoY Gr. Rt. %-8.1%-1.9%19.9%-7.3%-6.9%28.4%34.4%3%-14.8%-
Adj EPS 11.99.97.110.18.78.21213.820.17.816.3
YoY Gr. Rt. %--16.5%-28.2%42.2%-13.7%-5.6%45%15.3%45.6%-60.9%-
BVPS (₹) 128.5134.8140.4194.3174.1174184.9199.1214.6223.2229.9
Adj Net Profit 327273196293266263382441641251520
Cash Flow from Ops. -207313392-1995441,3175731,2701,4651,332-
Debt/CF from Ops. -12.210.58.8-22.89.23.27.83.32.62.7-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 5.8%7.1%5.7%-14.8%
Adj EPS -4.5%-2.1%-13.1%-60.9%
BVPS 6.35.16.54
Share Price -1.7% 13.3% 12.5% 47.5%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 8.77.55.26.24.94.96.77.29.73.67.2
Op. Profit Mgn % 12.410.711.313.413.315.214.112.51310.712.7
Net Profit Mgn % 6.34.93.64.44.44.65.24.56.32.95.1
Debt to Equity 0.70.90.90.80.90.80.80.70.60.50.2
Working Cap Days 264244241239284284243222229269219
Cash Conv. Cycle 174152139138172175144112919873

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 7.20%

Debt to equity has declined versus last 3 years average to 0.49

Sales growth is good in last 4 quarters at 29.46%

Sales growth has been subdued in last 3 years 5.67%

Net Profit has been subdued in last 3 years -13.11%

Latest Financials - Jindal Saw Ltd.

Standalone Consolidated
TTM EPS (₹) 16.3 16.3
TTM Sales (₹ Cr.) 10,289 12,506
BVPS (₹.) 229.9 225.3
Reserves (₹ Cr.) 7,287 7,139
P/BV 0.49 0.50
PE 6.89 6.87
From the Market
52 Week Low / High (₹) 68.75 / 147.65
All Time Low / High (₹) 3.31 / 244.98
Market Cap (₹ Cr.) 3,586
Equity (₹ Cr.) 64
Face Value (₹) 2
Industry PE 7.3

Management X-Ray of Jindal Saw :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *3.823.823.820.000.000.000.000.003.823.82
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

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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