NSEI:JINDRILL

Stock Analysis Report

Jindal Drilling & Industries

Executive Summary

Jindal Drilling & Industries Limited provides drilling services to the oil and gas sector in India.

Rewards

PE ratio (3.3x) is below the Indian market (12.9x)

Risk Analysis

Earnings have declined by -11.15% per year over past 5 years

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (3%) are lower than last year (16.9%)

+ 1 more risk


Snowflake Analysis

Fair value unattractive dividend payer.

Share Price & News

How has Jindal Drilling & Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JINDRILL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

JINDRILL

-1.5%

IN Energy Services

-2.4%

IN Market


1 Year Return

-30.8%

JINDRILL

13.9%

IN Energy Services

6.8%

IN Market

Return vs Industry: JINDRILL underperformed the Indian Energy Services industry which returned 13.9% over the past year.

Return vs Market: JINDRILL underperformed the Indian Market which returned 6.8% over the past year.


Shareholder returns

JINDRILLIndustryMarket
7 Day-3.6%-1.5%-2.4%
30 Day-6.4%6.6%-0.6%
90 Day-5.6%21.1%7.2%
1 Year-30.4%-30.8%15.0%13.9%8.9%6.8%
3 Year-59.3%-59.8%-23.6%-25.3%31.8%24.8%
5 Year-55.9%-56.7%39.1%36.4%40.3%27.8%

Price Volatility Vs. Market

How volatile is Jindal Drilling & Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Jindal Drilling & Industries undervalued compared to its fair value and its price relative to the market?

3.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JINDRILL (₹76.3) is trading above our estimate of fair value (₹3.51)

Significantly Below Fair Value: JINDRILL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JINDRILL is good value based on its PE Ratio (3.3x) compared to the Energy Services industry average (7.7x).

PE vs Market: JINDRILL is good value based on its PE Ratio (3.3x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate JINDRILL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JINDRILL is good value based on its PB Ratio (0.1x) compared to the IN Energy Services industry average (1x).


Next Steps

Future Growth

How is Jindal Drilling & Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

35.6%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Jindal Drilling & Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Jindal Drilling & Industries performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JINDRILL has a large one-off gain of ₹27.1M impacting its September 30 2019 financial results.

Growing Profit Margin: JINDRILL's current net profit margins (3%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: JINDRILL's earnings have declined by -11.2% per year over the past 5 years.

Accelerating Growth: JINDRILL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JINDRILL had negative earnings growth (-82.1%) over the past year, making it difficult to compare to the Energy Services industry average (28.7%).


Return on Equity

High ROE: JINDRILL's Return on Equity (0.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jindal Drilling & Industries's financial position?


Financial Position Analysis

Short Term Liabilities: JINDRILL's short term assets (₹2.3B) do not cover its short term liabilities (₹2.6B).

Long Term Liabilities: JINDRILL's short term assets (₹2.3B) do not cover its long term liabilities (₹3.0B).


Debt to Equity History and Analysis

Debt Level: JINDRILL's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: JINDRILL's debt to equity ratio has increased from 1.4% to 25.5% over the past 5 years.

Debt Coverage: JINDRILL's debt is not well covered by operating cash flow (1.7%).

Interest Coverage: Insufficient data to determine if JINDRILL's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: JINDRILL has a high level of physical assets or inventory.

Debt Coverage by Assets: JINDRILL's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Jindal Drilling & Industries's current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%0.6%markettop25%2.5%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: JINDRILL's dividend (0.65%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: JINDRILL's dividend (0.65%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


Stability and Growth of Payments

Stable Dividend: JINDRILL's dividend payments have been volatile in the past 10 years.

Growing Dividend: JINDRILL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (2.1%), JINDRILL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Jindal Drilling & Industries's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Radhey Gupta (62yo)

1.8yrs

Tenure

₹1,679,000

Compensation

Mr. Radhey Shyam Gupta has been the Chief Executive Officedr of Jindal Drilling & Industries since February 2, 2018. He has over 35 years of Experiance. 


CEO Compensation Analysis

Compensation vs Market: Radhey's total compensation ($USD23.56K) is about average for companies of similar size in the Indian market ($USD33.67K).

Compensation vs Earnings: Radhey's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.6yrs

Average Tenure

44.5yo

Average Age

Experienced Management: JINDRILL's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

10.8yrs

Average Tenure

66yo

Average Age

Experienced Board: JINDRILL's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹9,886,58404 Apr 19
D.P. Jindal Group of Companies
EntityCompany
Shares100,000
Max Price₹98.87

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Raghav Jindal (39yo)

    MD & Director

    • Tenure: 21.6yrs
    • Compensation: ₹9.67m
  • Pawan Rustagi

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: ₹2.33m
  • Saurabh Agrawal

    Company Secretary & Compliance Officer

    • Tenure: 0.7yrs
  • Radhey Gupta (62yo)

    Chief Executive officer

    • Tenure: 1.8yrs
    • Compensation: ₹1.68m
  • Satish Yadav (47yo)

    Chief Mechanic

    • Tenure: 0yrs
  • F Arockia Raj (42yo)

    Chief Mechanic

    • Tenure: 0yrs

Board Members

  • Dharam Jindal (69yo)

    Non-Executive Chairman

    • Tenure: 4.7yrs
    • Compensation: ₹240.00k
  • Raghav Jindal (39yo)

    MD & Director

    • Tenure: 21.6yrs
    • Compensation: ₹9.67m
  • Krishna Khandelwal (86yo)

    Independent Non-Executive Director

    • Tenure: 19.8yrs
    • Compensation: ₹250.00k
  • Vijay Kaushik (66yo)

    Independent Non-Executive Director

    • Tenure: 10.8yrs
    • Compensation: ₹250.00k
  • Saroj Bhartia (65yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: ₹210.00k

Company Information

Jindal Drilling & Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jindal Drilling & Industries Limited
  • Ticker: JINDRILL
  • Exchange: NSEI
  • Founded: 1983
  • Industry: Oil and Gas Drilling
  • Sector: Energy
  • Market Cap: ₹2.224b
  • Shares outstanding: 28.98m
  • Website: https://www.jindal.com/jdil/index.html

Number of Employees


Location

  • Jindal Drilling & Industries Limited
  • 5 Pusa Road
  • 2nd Floor
  • New Delhi
  • Delhi
  • 110005
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511034BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001
JINDRILLNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2001

Biography

Jindal Drilling & Industries Limited provides drilling services to the oil and gas sector in India. It provides offshore, horizontal and directional drilling, and mud logging services. The company was inco ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:45
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.