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.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘValue Creation Index Colour Code Guide ⓘ
|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 ⓘ
|YoY Gr. Rt. %||-||8.1%||-1.9%||19.9%||-7.3%||-6.9%||28.4%||34.4%||3%||-14.8%||-|
|Adj EPS ⓘ||11.9||9.9||7.1||10.1||8.7||8.2||12||13.8||20.1||7.8||16.3|
|YoY Gr. Rt. %||-||-16.5%||-28.2%||42.2%||-13.7%||-5.6%||45%||15.3%||45.6%||-60.9%||-|
|BVPS (₹) ⓘ||128.5||134.8||140.4||194.3||174.1||174||184.9||199.1||214.6||223.2||229.9|
|Adj Net Profit ⓘ||327||273||196||293||266||263||382||441||641||251||520|
|Cash Flow from Ops. ⓘ||-207||313||392||-199||544||1,317||573||1,270||1,465||1,332||-|
|Debt/CF from Ops. ⓘ||-12.2||10.5||8.8||-22.8||9.2||3.2||7.8||3.3||2.6||2.7||-|
CAGR ⓘCAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||-4.5%||-2.1%||-13.1%||-60.9%|
Key Financial Parameters ⓘPerformance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||8.7||7.5||5.2||6.2||4.9||4.9||6.7||7.2||9.7||3.6||7.2|
|Op. Profit Mgn % ⓘ||12.4||10.7||11.3||13.4||13.3||15.2||14.1||12.5||13||10.7||12.7|
|Net Profit Mgn % ⓘ||6.3||4.9||3.6||4.4||4.4||4.6||5.2||4.5||6.3||2.9||5.1|
|Debt to Equity ⓘ||0.7||0.9||0.9||0.8||0.9||0.8||0.8||0.7||0.6||0.5||0.2|
|Working Cap Days ⓘ||264||244||241||239||284||284||243||222||229||269||219|
|Cash Conv. Cycle ⓘ||174||152||139||138||172||175||144||112||91||98||73|
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%
|TTM EPS (₹)||16.3||16.3|
|TTM Sales (₹ Cr.)||10,289||12,506|
|BVPS (₹.) ⓘ||229.9||225.3|
|Reserves (₹ Cr.) ⓘ||7,287||7,139|
|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|
Jindal SAW is a part of the $10 billion OP Jindal group, one of the countryâ€™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 -
â€¢ Line pipes â€¢ Anti-corrosion coatings â€¢ Conversion casings â€¢ Hot-pulled induction bends
Ductile iron (DI) pipes -
â€¢ Seamless tubes