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Jindal Stainless Ltd

NSE: JSL BSE: 532508

746.15

(3.42%)

Tue, 17 Mar 2026, 08:46 pm

Jindal Stainless Analysis

dividend

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Pros

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    Cons

    • Unable to calculate sustainability of dividends as Jindal Stainless has not reported any payouts.
    • Unable to evaluate Jindal Stainless's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Jindal Stainless's dividend against the top 25% market benchmark as the company has not reported any payouts.

    future

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    Pros

    • Jindal Stainless's earnings are expected to grow significantly at over 20% yearly.
    • Jindal Stainless's earnings growth is expected to exceed the India market average.
    • Jindal Stainless's earnings growth is expected to exceed the low risk savings rate of 7.2%.
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    Cons

    • Cash flow for Jindal Stainless is expected to decrease over the next 2 years.
    • Jindal Stainless is expected to be loss making next year.
    • Jindal Stainless's net income is expected to increase but not above the 50% threshold in 2 years time.
    • Jindal Stainless is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Performance (ROE) is not expected to exceed the current IN Metals and Mining industry average.
    • A decline in Jindal Stainless's performance (ROE) is expected over the next 3 years.
    • Jindal Stainless's revenue is expected to increase but not above the 50% threshold in 2 years time.
    • Jindal Stainless's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
    • Jindal Stainless's revenue growth is positive but not above the India market average.

    health

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    Pros

    • Jindal Stainless is profitable, therefore cash runway is not a concern.
    • Jindal Stainless is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (37.3%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 1.1x debt.
    • Jindal Stainless's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (6648.6% vs 134.8% today).
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    Cons

    • Jindal Stainless's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
    • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
    • Jindal Stainless's level of debt (134.8%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • Ratan's remuneration is lower than average for companies of similar size in India.
    • The tenure for the Jindal Stainless management team is about average.
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    Cons

    • The average tenure for the Jindal Stainless board of directors is less than 3 years, this suggests a new board.

    misc

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    Pros

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      Cons

      • Jindal Stainless has significant price volatility in the past 3 months.

      past

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      Pros

      • Jindal Stainless has delivered over 20% year on year earnings growth in the past 5 years.
      • Jindal Stainless has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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      Cons

      • Jindal Stainless's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Jindal Stainless used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
      • Jindal Stainless has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Jindal Stainless's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.

      value

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      Pros

      • Jindal Stainless's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Jindal Stainless's share price is below the future cash flow value, and at a substantial discount (> 40%).
      • Jindal Stainless is good value based on assets compared to the IN Metals and Mining industry average.
      • Jindal Stainless is good value based on expected growth next year.
      • Jindal Stainless is good value based on earnings compared to the India market.
      • JSL outperformed the Metals and Mining industry which returned -28.6% over the past year.
      • JSL outperformed the Market in India which returned -14.5% over the past year.
      • NSEI:JSL is up 17.9% outperforming the Metals and Mining industry which returned 7.5% over the past month.
      • NSEI:JSL is up 17.9% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Jindal Stainless is overvalued based on earnings compared to the IN Metals and Mining industry average.

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