JTL Industries (JTLIND)

FairStock Score: 30/100 — RISKY

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

Key Financials

Strengths

• Low debt/equity ratio of 0.13 provides financial resilience in a cyclical industry.
• Promoter holding of 49.26% aligns management interests with minority shareholders.
• ROCE of 13.01% indicates acceptable capital efficiency at the operating level.
• Net profit grew 4.16% despite a 6.35% sales decline, showing some margin resilience.
• Piotroski F-Score of 6/9 suggests moderately healthy fundamentals.

Concerns

• P/E of 30.94 and PEG of 7.44 are far too rich for a business with low single-digit profit growth.
• ROE of only 6.62% is weak relative to the 2.50 times book value asked at the current price.
• Sales are shrinking, confirming cyclical weakness in the iron and steel segment.
• Dividend yield of 0.20% offers negligible downside support, and FairStock Score is 8/100 (Risky).

AI Analysis

Let me look at JTL Industries as a business, not a ticker. It is an iron and steel products company, and that immediately tells me to be careful: steel is cyclical, and current numbers confirm the cycle is soft. Sales fell 6.35%, though profit rose 4.16%. That divergence is a yellow flag—growth is coming from margins or costs, not from underlying demand. At ₹76.22, the market capitalises it at ₹2,431 Cr. I am asked to pay 30.94 times earnings and 2.50 times book value. Book value is ₹30.48, so the market is assuming a lot of future value creation. But the business returned only 6.62% on equity last year. A 6.62% ROE does not justify a 30.94 P/E unless the cycle turns dramatically. The PEG ratio of 7.44 reinforces that the current profit growth is nowhere near enough to support the multiple. The balance sheet is decent: debt/equity is only 0.13, and Piotroski F-score of 6/9 suggests no immediate distress. ROCE is 13.01%, which is respectable, but the equity holder is not seeing it. The dividend yield is a token 0.20%, so I can't wait for income while I wait for value. Promoter holding 49.26% is positive—owners have skin in the game. FairStock Score marks it 8/100, with good reason. This is not a compounding machine with pricing power; it’s a cyclical operation selling at a growth price. I would need a materially lower price or clear evidence of a durable demand recovery before investing. As Graham said, price is what you pay, value is what you get. At today’s price, the value isn't obvious.

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