Jindal Worldwide (JINDWORLD)
CyclicalFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹35.26 |
| Market Cap | ₹3,535.17 Cr |
| P/E Ratio | 41.48 |
| ROCE | 10.24% |
| ROE | 8.6% |
| Dividend Yield | 0% |
| Profit Growth | 88.2% |
| Debt/Equity | 0.65 |
| Sales Growth | 6.1% |
| Promoter Holding | 61.77% |
| 52-Week Range | ₹17.85 — ₹61.96 |
| Sector | Textiles & Apparels |
| Book Value | ₹8.56 |
Strengths
- Promoter holding is 61.77%, which aligns management interest with minority shareholders.
- Debt-to-equity is 0.71, so leverage is not extreme despite the downturn.
- The company is still profitable on a quarterly basis, with a net profit of ₹14 Cr on sales of ₹532 Cr.
- ROCE of 10.24% is higher than ROE of 8.60%, suggesting some operating capital efficiency above equity returns.
Concerns
- Sales are down 14.77% and profit is down 22.33%, showing clear negative momentum.
- P/E of 37.66 and P/B of 3.47 look expensive for a business with sub-9% ROE and declining earnings.
- Net margin is very thin at roughly 2.6%, leaving little room for error.
- Piotroski F-Score of 3/9 indicates weak financial health, and the stock has zero dividend yield.
AI Analysis
Let me look at Jindal Worldwide the way I would any business. The first question is: what quality of earnings are you buying? Here, the numbers are not encouraging. Return on equity is just 8.60%, and return on capital employed is 10.24%. That tells me this is not a high-return franchise. Textiles are a competitive, often commodity-like business, and I see no clear moat in these figures. Sales have fallen 14.77%, and profits have fallen 22.33%. In the latest quarter, net profit was ₹14 Cr on sales of ₹532 Cr — a net margin of barely 2.6%. That is a thin, fragile margin. The debt-to-equity ratio of 0.71 is not alarming, but with falling profits, debt is a burden, not a helper. The Piotroski F-score of 3 out of 9 also points to deteriorating fundamentals. Now look at the price: ₹25.72, a market cap of ₹2,474 Cr, a P/E of 37.66, and a P/B of 3.47 against a book value of just ₹7.41. For a business with negative growth and sub-9% ROE, that is a rich price. There is no dividend yield to compensate you while you wait. Promoter holding of 61.77% is positive, but it does not make a poor risk-reward attractive. As a value investor, I need a margin of safety. At this price, the market is paying for recovery that the financials do not yet show. I would pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer