Jindal Steel (JINDALSTEL)

FairStock Score: 41/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear my Graham goggles first. At ₹1091.50, Jindal Steel sells for a market cap of ₹1.11 lakh Cr, yet its book value is only ₹500.34, so P/B is 2.18. Graham's number is ₹449.92, giving a margin of safety of -176.54%—meaning I am paying far above a conservative asset-based value. The P/E of 40.82 is not supported by ROE of 4.20%; profits are weak relative to equity. Steel is a cyclical business, and the latest quarter shows sales of ₹13,027 Cr but net profit of merely ₹189 Cr. Sales growth of 22.96% is encouraging, but profit growth of -33.13% tells me the company is not converting revenue into earnings. Free cash flow is negative ₹1,499 Cr, and EV/EBITDA of 129.37 is an extraordinary multiple that demands caution. On the positive side, debt/equity of 0.44 is manageable, promoter holding of 62.71% gives alignment, and Piotroski F-Score of 7/9 suggests some accounting/fundamental strength. ROCE of 10.67% is better than ROE, but still not a wide-moat number. Altman Z-Score of 2.36 is not a high safety cushion. Dividend yield of 0.18% offers little comfort. The 52-week range ₹977.10–₹1306.20 shows volatility. Overall, this is a cyclical steel maker with a strong promoter but weak earnings quality and a valuation that already bakes in a lot of recovery. I would wait for FCF to turn positive, profits to stabilize, and a price closer to Graham value before considering it.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer