Jindal Steel & Power Ltd fundamental analysis highlights key financial metrics including market capitalisation of ₹93,629 crore, PE ratio of 16.7, debt-to-equity ratio of 0.37, and return on equity of 14.3%. These figures reflect the company’s financial health and current market valuation.
Content:
- Jindal Steel & Power Ltd Overview
- Jindal Steel & Power Financial Results
- Jindal Steel & Power Financial Analysis
- Jindal Steel & Power Company Metrics
- Jindal Steel & Power Stock Performance
- Jindal Steel & Power Ltd Peer Comparison
- Jindal Steel & Power Ltd Shareholding Pattern
- Jindal Steel & Power History
- How To Invest In Jindal Steel & Power Ltd Share?
- Jindal Steel Fundamental Analysis – FAQs
Jindal Steel & Power Ltd Overview
Jindal Steel & Power Ltd is a major Indian steel and energy company with a robust market presence. It focuses on steel manufacturing, power generation and infrastructure, exhibiting solid financial metrics and strong market valuation.
The company has a market capitalisation of ₹3,26.502 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 16.3% below its 52-week high and 57.8% above its 52-week low.
Jindal Steel & Power Financial Results
Jindal Steel and Power Ltd’s financial results for FY24 show a slight decline in sales to ₹50,027 crore from ₹51,086 crore in FY22. Net profit also decreased to ₹5,943 crore from ₹6,766 crore.
- Revenue Trend: Sales fluctuated, with ₹51,086 crore in FY22, dipping to ₹50,027 crore in FY24. Expenses increased from ₹35,572 crore in FY22 to ₹39,826 crore in FY24, impacting profitability.
- Equity and Liabilities: Interest expenses decreased from ₹1,888 crore in FY22 to ₹1,294 crore in FY24, reflecting effective debt management and a focus on reducing financial liabilities.
- Profitability: Operating profit declined from ₹15,513 crore in FY22 to ₹10,201 crore in FY24. EBITDA mirrored this trend, decreasing from ₹15,564 crore in FY22 to ₹10,357 crore in FY24, with OPM% dropping from 30% to 20%.
- Earnings Per Share (EPS): EPS in FY24 rose to ₹59.15 from ₹31.54 in FY23 but was slightly higher at ₹56.4 in FY22, indicating variability in profitability per share.
- Return on Net Worth (RoNW): RoNW weakened, as net profit fell from ₹6,766 crore in FY22 to ₹5,943 crore in FY24, reflecting a reduced return on shareholders’ equity.
- Financial Position: Jindal Steel and Power Ltd maintained a low dividend payout ratio, decreasing from 5.32% in FY22 to 3.38% in FY24, indicating a conservative approach to shareholder returns.
Jindal Steel & Power Financial Analysis
| FY 24 | FY 23 | ||
| Sales | 50,027 | 52,711 | 51,086 |
| Expenses | 39,826 | 42,776 | 35,572 |
| Operating Profit | 10,201 | 9,935 | 15,513 |
| OPM % | 20 | 19 | 30 |
| Other Income | 156.6 | -1,312 | -355.88 |
| EBITDA | 10,357 | 9,992 | 15,564 |
| Interest | 1,294 | 1,446 | 1,888 |
| Depreciation | 2,822 | 2,691 | 2,097 |
| Profit Before Tax | 6,241 | 4,486 | 11,173 |
| Tax % | 4.77 | 28.81 | 26.17 |
| Net Profit | 5,943 | 3,974 | 6,766 |
| EPS | 59.15 | 31.54 | 56.4 |
| Dividend Payout % | 3.38 | 6.34 | 5.32 |
*All values in ₹ Crores
Jindal Steel & Power Company Metrics
The company exhibits a robust market presence with a market cap of ₹93,629 Cr. Strong financial metrics include a 14.3% ROE, a Stock P/E of 16.7, and a low debt-to-equity ratio of 0.37, ensuring sustained growth and profitability.
- Market Cap: With a market cap of ₹93,629 Cr., the company demonstrates significant market value, reflecting its strong investor confidence and growth.
- Book Value: The book value of ₹434 indicates the company’s solid financial position, showing a strong asset base relative to liabilities.
- Face Value: The face value of ₹1.00 represents the nominal value of the company’s shares, crucial for calculating dividends and splits.
- Turnover: An asset turnover ratio of 0.68 suggests the company efficiently generates revenue relative to its assets, showcasing operational effectiveness.
- PE Ratio: The price-to-earnings (P/E) ratio of 16.7 indicates the stock is fairly valued, with moderate investor expectations for earnings growth.
- Debt: With a debt of ₹16,472 Cr. and a debt-to-equity ratio of 0.37, the company maintains a balanced capital structure.
- ROE: A return on equity (ROE) of 14.3% signifies effective management, showcasing how well the company utilizes shareholders’ equity to generate profit.
- EBITDA Margin: An EBITDA margin of 20.4% reflects the company’s strong profitability before accounting for interest, taxes, depreciation, and amortization.
- Dividend Yield: The dividend yield of 0.22% indicates a modest return to shareholders, reflecting the company’s focus on reinvestment and growth.
Jindal Steel & Power Stock Performance
The table shows Jindal Steel & Power Ltd returns on investment as 55% over 5 years, 29% over 3 years, and 39% over 1 year. These figures reflect a strong and consistent performance in delivering returns to investors over different time frames.
| Period | Return on Investment (%) |
| 5 Years | 55% |
| 3 Years | 29% |
| 1 Year | 39% |
Example:
An investment of ₹1,00,000 in Jindal Steel & Power Ltd five years ago would have grown to ₹1,55,000, reflecting a 55% return.
A three-year investment would now be worth ₹1,29,000, showing a 29% return.
Last year’s ₹1,00,000 investment would have increased to ₹1,39,000, indicating a 39% return.
Jindal Steel & Power Ltd Peer Comparison
Competitor analysis of Jindal Steel & Power Ltd reveals its strong market position with a CMP of ₹917.85 and a market cap of ₹93,628.82 crore. Compared to competitors like Vraj Iron and Bihar Sponge, Jindal Steel excels in EPS and ROE, highlighting its robust financial performance.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | Jindal Steel | 929.75 | 94874.01 | 0.27 | -7.51 | 40.39 |
| 2 | Vraj Iron | 216 | 712.86 | |||
| 3 | Bihar Sponge | 21.76 | 196.29 | 0.43 | 43.54 | 152.44 |
| 4 | Chaman Metallics | 75.65 | 182.58 | 0.15 | 6.55 | 26.93 |
| 5 | S.A.L Steel | 18.97 | 161.01 | 19.38 | -15.88 | 13.93 |
| 6 | Vaswani Industri | 51.18 | 152.72 | 0.34 | 47.71 | 136.94 |
| 7 | Nova Iron & Steel | 21.05 | 76.07 | -23.92 | 21.75 |
Jindal Steel & Power Ltd Shareholding Pattern
The shareholding Pattern of Jindal Steel & Power Ltd reveals a stable distribution across major investor categories. Promoters hold a strong 61.19% stake, while FIIs and DIIs hold 12.64% and 15.34%, respectively. Retail and other investors hold 10.82%, showing minor fluctuations over the years.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 61.19 | 61.2 | 61.2 | 61.2 |
| FII | 12.64 | 11.93 | 11.75 | 12.23 |
| DII | 15.34 | 14.73 | 15.33 | 15.22 |
| Retail & others | 10.82 | 12.14 | 11.72 | 11.36 |
*All values in %
Jindal Steel & Power History
Jindal Steel & Power Ltd (JSPL) was established in 1979, initially focusing on steel manufacturing. Over the years, it expanded its operations to include power production, mining, and infrastructure development, significantly enhancing its industry footprint.
The company’s growth trajectory includes major milestones such as the development of an iron-making capacity of 10.42 MTPA and a captive power plant with a capacity of 1634 MW. These expansions solidified its position as an industrial leader.
JSPL’s history also features significant international acquisitions, including Shadeed Iron and Steel Co. in Oman and Welspun’s US-based plate and pipe mills. These moves underscore JSPL’s strategic focus on global market expansion and operational excellence.
How To Invest In Jindal Steel & Power Ltd Share?
Investing in Jindal Steel & Power Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Jindal Steel & Power Ltd shares and place your buy order.
Jindal Steel Fundamental Analysis – FAQs
Jindal Steel & Power Ltd fundamental analysis shows a market capitalization of ₹93,629 crore, a PE ratio of 16.7, a debt-to-equity ratio of 0.37, and a return on equity of 14.3%, indicating strong financial health and valuation.
The market cap of Jindal Steel & Power Ltd as of August 13, 2024, is approximately ₹93,629 crore. This value reflects the company’s strong market position in the Indian cement industry.
Jindal Steel & Power Limited (JSPL) is a major Indian conglomerate specializing in steel manufacturing, power generation, and infrastructure. Established in 1979, it operates across various sectors, including mining and energy, with a significant global footprint.
Naveen Jindal is the owner and Chairman of Jindal Steel & Power Limited (JSPL). He leads the company, continuing the legacy of the Jindal Group’s founder, Shri O.P. Jindal, and driving its growth and innovation.
The main shareholders of Jindal Steel & Power Limited (JSPL) include promoters with a significant stake, institutional investors such as foreign institutional investors (FIIs), domestic institutional investors (DIIs), and retail investors.
Jindal Steel & Power Limited (JSPL) operates in the steel and power industry. It focuses on manufacturing steel products and generating power, encompassing segments such as steel production, power generation, mining, and infrastructure development.
To invest in Jindal Steel & Power Ltd shares, open a demat and trading account with Alice Blue. After account setup, place buy orders for JSPL shares through the broker’s trading platform. Ensure you research and monitor market trends.
Determining if Jindal Steel & Power is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
