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

AI Analysis

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

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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