NSEI:JSL

Stock Analysis Report

Jindal Stainless

Executive Summary

Jindal Stainless Limited manufactures and sells stainless steel products in India and internationally.

Snowflake

Fundamentals

Good value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JSL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.8%

JSL

-2.3%

IN Metals and Mining

-0.06%

IN Market


1 Year Return

-4.4%

JSL

-22.9%

IN Metals and Mining

4.9%

IN Market

Return vs Industry: JSL exceeded the Indian Metals and Mining industry which returned -22.9% over the past year.

Return vs Market: JSL underperformed the Indian Market which returned 4.9% over the past year.


Shareholder returns

JSLIndustryMarket
7 Day6.8%-2.3%-0.06%
30 Day13.1%2.9%1.9%
90 Day38.5%10.7%9.6%
1 Year-4.4%-4.4%-21.7%-22.9%6.9%4.9%
3 Year10.6%10.6%8.6%-3.5%38.5%31.5%
5 Year26.9%26.9%9.0%-8.4%41.8%29.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Jindal Stainless undervalued compared to its fair value and its price relative to the market?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JSL (₹39.2) is trading below our estimate of fair value (₹69.2)

Significantly Below Fair Value: JSL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JSL is poor value based on its PE Ratio (11.6x) compared to the Metals and Mining industry average (8.3x).

PE vs Market: JSL is good value based on its PE Ratio (11.6x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: JSL is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: JSL is good value based on its PB Ratio (0.7x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is Jindal Stainless forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JSL's forecast earnings growth (10.8% per year) is above the savings rate (7.6%).

Earnings vs Market: JSL's earnings (10.8% per year) are forecast to grow slower than the Indian market (18.8% per year).

High Growth Earnings: JSL's earnings are forecast to grow, but not significantly.

Revenue vs Market: JSL's revenue (6.2% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: JSL's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if JSL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Jindal Stainless performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JSL has large one-off items impacting its financial results.

Growing Profit Margin: JSL's current net profit margins (1.2%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: JSL has become profitable over the past 5 years, growing earnings by 22% per year.

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

Earnings vs Industry: JSL had negative earnings growth (-33.5%) over the past year, making it difficult to compare to the Metals and Mining industry average (1.7%).


Return on Equity

High ROE: JSL's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jindal Stainless's financial position?


Financial Position Analysis

Short Term Liabilities: JSL's short term assets (₹40.8B) do not cover its short term liabilities (₹46.0B)

Long Term Liabilities: JSL's short term assets (₹40.8B) exceeds its long term liabilities (37.0B)


Debt to Equity History and Analysis

Debt Level: JSL's debt to equity ratio (134.8%) is considered high.

Reducing Debt: JSL's debt to equity ratio has reduced from 8152.5% to 134.8% over the past 5 years.

Debt Coverage: JSL's debt is well covered by operating cash flow (37.3%).

Interest Coverage: JSL's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: JSL's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Jindal Stainless's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.4%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate JSL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate JSL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JSL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JSL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JSL is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JSL's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

  • Explore strong dividend paying companies in the Materials industry.

Management

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

2.2yrs

Average management tenure


CEO

Ratan Jindal (58yo)

12.6yrs

Tenure

0

Mr. Ratan Kumar Jindal has been the Managing Director of Jindal Stainless Limited since April 1, 2007. Mr. Jindal serves as Managing Director of Jindal Stainless UK Limited. He serves as the Managing Direc ...


CEO Compensation Analysis

Compensation vs Market: Ratan's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD280.00K).

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


Management Age and Tenure

2.2yrs

Average Tenure

54.5yo

Average Age

Experienced Management: JSL's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

60yo

Average Age

Experienced Board: JSL's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: JSL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹4,781,10602 Sep 19
Ratan Jindal
EntityIndividual
Role
Co-Chief Executive Officer
Chairman & MD
Shares154,922
Max Price₹30.86
Buy₹4,238,09501 Jul 19
Ratan Jindal
EntityIndividual
Role
Co-Chief Executive Officer
Chairman & MD
Shares118,472
Max Price₹35.77
Buy₹3,568,14824 Jun 19
Ratan Jindal
EntityIndividual
Role
Co-Chief Executive Officer
Chairman & MD
Shares110,000
Max Price₹32.44
Buy₹5,131,06031 May 19
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares132,997
Max Price₹38.58
Buy₹2,484,59303 Apr 19
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares60,000
Max Price₹41.41
Buy₹4,046,21825 Mar 19
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares100,000
Max Price₹40.46
Buy₹4,732,36022 Mar 19
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares120,000
Max Price₹39.44
Buy₹5,899,13816 Mar 19
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares150,000
Max Price₹39.33
Buy₹120,00104 Mar 19
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares60,000
Max Price₹2.00
Buy₹3,399,02015 Feb 19
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares115,000
Max Price₹29.56
Buy₹610,60129 Dec 18
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares18,569
Max Price₹32.88
Buy₹1,652,85519 Dec 18
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares50,000
Max Price₹33.06
Buy₹1,626,86514 Dec 18
Abhyuday Jindal
EntityIndividual
Role
Member of the Board of Directors
MD & Director
Shares49,000
Max Price₹33.20

Ownership Breakdown

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


Management Team

  • Ratan Jindal (58yo)

    Chairman & MD

    • Tenure: 12.6yrs
  • Deepika Jindal (54yo)

    MD & Director of JSL Architecture Ltd and MD of JSL Lifestyle Ltd

    • Tenure: 0yrs
    • Compensation: ₹11.48m
  • Abhyuday Jindal (30yo)

    MD & Director

    • Tenure: 2.3yrs
  • S. Jain (60yo)

    Head & Director of Hisar Unit

    • Tenure: 0yrs
    • Compensation: ₹11.08m
  • Rajiv Rajvanshi (55yo)

    Senior Vice President of Strategy & Legal

    • Tenure: 0yrs
    • Compensation: ₹10.55m
  • Tarun Khulbe (54yo)

    Senior VP of Projects & Whole Time Director

    • Tenure: 1.5yrs
    • Compensation: ₹14.23m
  • Vijay Sharma (56yo)

    Vice President of Sales & Marketing

    • Tenure: 0yrs
    • Compensation: ₹9.49m
  • Anurag Mantri

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: ₹20.26m
  • Amitabh Akhauri (54yo)

    Group CHRO

    • Tenure: 0yrs
    • Compensation: ₹7.99m
  • Navneet Raghuvanshi

    Company Secretary & Compliance Officer

    • Tenure: 1.6yrs
    • Compensation: ₹6.54m

Board Members

  • Ratan Jindal (58yo)

    Chairman & MD

    • Tenure: 12.6yrs
  • Suman Khaitan (60yo)

    Independent Director

    • Tenure: 0.2yrs
    • Compensation: ₹520.00k
  • Jayaram Easwaran (67yo)

    Additional Independent Director

    • Tenure: 0.3yrs
  • Deepika Jindal (54yo)

    MD & Director of JSL Architecture Ltd and MD of JSL Lifestyle Ltd

    • Tenure: 0yrs
    • Compensation: ₹11.48m
  • Savitri Jindal (69yo)

    Chairperson Emeritus

    • Tenure: 6.1yrs
  • Gautam Kanjilal (70yo)

    Non-Independent Nominee Director

    • Tenure: 9.6yrs
    • Compensation: ₹480.00k
  • Abhyuday Jindal (30yo)

    MD & Director

    • Tenure: 2.3yrs
  • Tarun Khulbe (54yo)

    Senior VP of Projects & Whole Time Director

    • Tenure: 1.5yrs
    • Compensation: ₹14.23m
  • Bhaswati Mukherjee (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹400.00k

Company Information

Jindal Stainless Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jindal Stainless Limited
  • Ticker: JSL
  • Exchange: NSEI
  • Founded: 1980
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹18.588b
  • Shares outstanding: 487.23m
  • Website: https://www.jslstainless.com

Number of Employees


Location

  • Jindal Stainless Limited
  • Jindal Centre
  • 12, Bhikaiji Cama Place
  • New Delhi
  • Delhi
  • 110066
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532508BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2003
JSLNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2003
JSLLBDL (Bourse de Luxembourg)GDS (REPR 2 SHS REG S)LUUSDSep 2006

Biography

Jindal Stainless Limited manufactures and sells stainless steel products in India and internationally. Its products include ferro alloys, slabs, hot rolled coils, plates and sheets, and cold rolled coils a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 12:41
End of Day Share Price2019/11/20 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.