Jindal Stainless Ltd - Stock Valuation and Financial Performance

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

Jindal Stainless Share Price

776.20 41.05 5.58%
as on 20-Sep'24 16:01

DeciZen - make an informed investing decision on Jindal Stainless

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Jindal Stainless stock performance -

mw4me loader
P/E Ratio (CD):
24.44
Market Cap:
63,915 Cr.
52-wk low:
429
52-wk high:
848

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 good 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 Somewhat overvalued 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 majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 10.2%2.1%9.2%14.4%12%11.1%18%44.8%21%23%-
Value Creation
Index
NA-0.9-0.30.0-0.1-0.20.32.30.61.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6,9487,1449,27911,63813,55712,95112,18832,73335,69738,56237,808
Sales YoY Gr.-2.8%29.9%25.4%16.5%-4.5%-5.9%168.6%9.1%8%-
Adj EPS -26.2-22.81.66.92.51.3754.82530.231.8
YoY Gr.-NANA336.5%-64.3%-48.8%453.5%679.9%-54.5%21%-
BVPS (₹) -7.655.343.550.152.755.864.7131.3144.9174.3182.1
Adj Net
Profit
-593-52863.6333119623422,8812,0552,4872,615
Cash Flow from Ops. 5549665,1151,4521,4191,1801,3081,0383,0964,818-
Debt/CF from Ops. 20.410.71.23.53.13.32.43.81.31.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 21%23.3%46.8%8%
Adj EPS NA64.9%62.6%21%
BVPSNA27%39.1%20.3%
Share Price 33.3% 87.5% 70.1% 67.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
-455.4-55.23.615.54.72.311.644.218.918.917.8
Op. Profit
Mgn %
5.3812.611.58.68.811.714.89.911.712.5
Net Profit
Mgn %
-8.5-7.40.72.90.90.52.88.95.76.46.9
Debt to
Equity
-65.88.13.42.11.71.410.60.30.4-
Working Cap
Days
3233332071191021081209213612765
Cash Conv.
Cycle
9859272721181626392820

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 46.80%

Net Profit is growing at healthy rate in last 3 years 62.56%

Return on Equity has declined versus last 3 years average to 17.80%

Sales growth is not so good in last 4 quarters at 0.52%

Latest Financials - Jindal Stainless Ltd.

Standalone Consolidated
TTM EPS (₹) 29.7 31.8
TTM Sales (₹ Cr.) 37,914 37,808
BVPS (₹.) 173.3 182.1
Reserves (₹ Cr.) 14,104 14,831
P/BV 4.48 4.26
PE 26.16 24.44
From the Market
52 Week Low / High (₹) 429.00 / 848.00
All Time Low / High (₹) 14.20 / 848.00
Market Cap (₹ Cr.) 63,915
Equity (₹ Cr.) 164.7
Face Value (₹) 2
Industry PE 32.1

Management X-Ray of Jindal Stainless:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *78.3278.0778.0782.9577.5477.5477.540.000.000.00
* 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales6,9487,1449,27911,63813,55712,95112,18832,73335,69738,562
Operating Expenses 6,5816,5718,11310,29712,39311,81110,76427,90332,18234,052
Manufacturing Costs1,2491,6021,8852,1792,6702,6762,3964,9426,0425,659
Material Costs4,8604,5285,7347,5029,1758,5787,80921,33124,47226,715
Employee Cost 157133154196175186170510509604
Other Costs 3143093404203723713891,1201,1591,074
Operating Profit 3675721,1661,3401,1651,1391,4244,8303,5154,511
Operating Profit Margin (%) 5.3%8.0%12.6%11.5%8.6%8.8%11.7%14.8%9.8%11.7%
Other Income 55262645334041331197363
Interest 9421,030788566637586480344325554
Depreciation 411316325320352425403759724879
Exceptional Items 1,184-40264141020099
Profit Before Tax 253-7881165202221656904,1592,7743,592
Tax 0-2323217477932701,050690899
Profit After Tax 253-55683346145734193,1092,0842,693
PAT Margin (%) 3.6%-7.8%0.9%3.0%1.1%0.6%3.4%9.5%5.8%7.0%
Adjusted EPS (₹)11.2-24.12.07.23.01.58.658.625.733.0
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%10%9%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund -1711,3431,7882,4652,5912,7173,1516,89711,93114,348
Share Capital 46468096969797105165165
Reserves -2181,2971,7082,3692,4952,6203,0546,79211,76614,184
Minority Interest4569121313673617
Debt10,8039,6885,3804,6023,8963,3613,1073,7823,6005,289
Long Term Debt8,0707,3233,3823,5513,1532,7162,5932,6302,7924,563
Short Term Debt2,7322,3641,9981,0527436465141,153808726
Trade Payables1,3791,7781,8652,1332,4882,6602,6325,7437,8216,926
Others Liabilities 2,2602,0181,8941,6251,7281,9261,8316,0863,7274,185
Total Liabilities 14,27414,83110,93210,83410,71510,67810,73522,57627,11530,765

Fixed Assets

Gross Block9,7117,3997,4557,5027,8638,1298,17212,19314,24017,998
Accumulated Depreciation2,1595368471,1591,5181,9492,3173,5474,2794,754
Net Fixed Assets7,5526,8636,6096,3426,3456,1815,8558,6469,96113,244
CWIP 14470291442915585257731,112
Investments 143934044394544494566269701,246
Inventories1,9581,9132,0972,3842,4152,7392,7896,7858,3947,932
Trade Receivables1,0859368909079197059343,8603,6582,837
Cash Equivalents 4880516345691162569311,988
Others Assets3,4744,5778535555085215261,8782,4292,406
Total Assets 14,27414,83110,93210,83410,71510,67810,73522,57627,11530,765

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 5549665,1151,4521,4191,1801,3081,0383,0964,818
PBT -931-7881165202221656904,1592,7743,592
Adjustment 1,4111,3431,0318368851,0167879688731,213
Changes in Working Capital 8397399682315-6-181-3232203750
Tax Paid 4314-2715-3511-857-754-737
Cash Flow From Investing Activity 241,053-31-193-192-188-152-985-2,482-3,340
Capex 2-168-58-195-206-175-162-968-1,648-1,451
Net Investments 0158-107-21-7-34-865-200
Others 221,206191268171731-1,689
Cash Flow From Financing Activity -580-1,972-5,106-1,257-1,237-991-1,119101-386-829
Net Proceeds from Shares 002550000000
Net Proceeds from Borrowing 369-650-4,385-143-471-413-696-11926992
Interest Paid -948-958-864-633-461-502-340-325-296-533
Dividend Paid 000000000-286
Others -1-363118-531-305-76-82545-359-103
Net Cash Flow -247-212-11237154228649
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)N/A-100.625.5116.75.892.7714.2961.8922.1320.5
ROCE (%)N/A2.069.214.4111.9811.0918.0244.7920.9722.97
Asset Turnover Ratio0.480.530.771.091.271.231.1621.461.35
PAT to CFO Conversion(x)2.19N/A61.634.29.7916.163.120.331.491.79
Working Capital Days
Receivable Days69483428242324263830
Inventory Days140927469647281537676
Payable Days162127116979211012472101101

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 20-Sep-2024 16:01 is ₹776.2.
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 20-Sep-2024 16:01 the market cap of Jindal Stainless stood at ₹63,915.
The latest P/E ratio of Jindal Stainless as of 20-Sep-2024 16:01 is 26.16.
The latest P/B ratio of Jindal Stainless as of 20-Sep-2024 16:01 is 4.48.
The 52-week high of Jindal Stainless is ₹848.0 and the 52-week low is ₹429.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Jindal Stainless is ₹37,914 ( 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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