Hi, today I am going to discuss the share price of Jindal Steel and Power Limited. In this article, I am analyzing the fundamentals of Jindal Steel and power share and the technical analysis of Jindal Steel.
Jindal Steel and Power Limited is an Indian-based steel producer, power producer, infrastructure development, etc. It was incorporated in the year 1979 by Mr. Naveen Jindal.
The company’s segment includes Iron and steel, power, and infrastructure. It includes the manufacturing of steel products, sponge iron, pellets, and castings. Power generation is also one of its main segments. Other segments include aviation, machinery, division, and real estate.
The product portfolio of Jindal Steel and Power Ltd includes rails, parallel flange beams, columns, coils, plates, channels and angles, wire rods, round bars, Jindal panther Thermo mechanical treated rebars, Jindal cement, fabricated sections, and semi-finished.
NSE Symbol is JINDALSTEL
Fundamentals of Jindal steel and power limited:
sector | Steel/Sponge Iron/Pig Iron |
Market Cap: | 58,751.97 Cr |
Sectoral Mcap Rank: | 3 |
Enterprise Value: | 69.021.98 Cr. |
No. of Shares: | 102.01 Cr. |
P/E: | 6.48 |
P/B | 1.33 |
Face value: | 1 Rs |
Dividend Yield: | 0.57% |
Cash: | 3,055.82 Cr. |
Book Value: | 434.25 |
Promoter Holding: | 61.2% |
EPS: | 88.83 |
DEBT: | 13.325.83 Cr. |
Sales Growth: | 48.41% |
ROE: | 22.69% |
ROCE: | 24.71% |
Profit growth: | 15.78% |
Shareholding:
Promoters Holding: 61.2%
DII Holding: 14.87%
Public Holding: 12.9%
FII Holding: 11.02%
Strengths:
The company shows good revenue growth of 48.41% in the last 1 year, 21.27% in the last 3 years 28.98% in the last 5 years.
The PEG ratio of a company is 0.38.
The cash cycle of the company is -46.37 days.
The company has better cash flow management; CFO/PAT stands at 2.78.
Weakness:
The pledging of the promoter’s holding is very high at 40.84%.
Is Jindal Steel and Power good for long-term investment?
Investing in stock is risky but when we analyze the financial data to find out the company’s true net worth. This is done by analyzing the company’s profit and loss account, balance sheet, and cash flow statement. But it takes a lot of time. The easiest way to find out about a company’s true value is to look at its financial ratios which give us a clear picture of the financial health of the company.
Here are some ratios you have to consider before investing:
PE ratio: if the P/E of the share is trading at a low then it is undervalued. In Jindal Steel and Power Ltd’s case, the PE ratio is 6.48 which is quiet and undervalued.
ROA (Return on Asset): this indicates how the company can earn a return on its investment in assets. But in Jindal Steel and Power Ltd’s case, ROA is 11.25% which is a bad signal for future performance.
Current ratio: it measures the company’s ability to pay short-term liabilities with its short-term assets. A higher current ratio is desirable for the company. So Jindal Steel and Power has a current ratio of 1.32.
Return on equity: Jindal Steel and Power has a higher ROE of 22.69% which is good for its stockholders they can get more return on their investment.
Sales growth: Jindal Steel and Power has a good revenue growth of 48.41%, which relates to its growth.
Dividend Yield: Jindal Steel and Power gives 3rs dividend and the yield is 0.53% which is good.
Debt to equity ratio: Jindal Steel and Power has a 0.33 debt-to-equity ratio which means the company has a low proportion of debt in its capital.
Tata Steel Share price prediction
Technical analysis of the Jindal Steel and Power ltd.
Technical analysis gives a clear pitcher of the stock by its historical data analysis and as of now Jindal steel and power is near its all-time high.
On 28/12/2022 Jindal Steel and Power is trading near 578 and its all-time high is 796.10 which is 218 points more than the current price.
Now the stock is moving with strong movement towards its all-time high. But some pullback is possible before touching its all-time high.
After the pullback, the next support is 500 if the sustains this level and continues its trend then it will touch its all-time high.
Jindal Steel and Power Share price target 2022, 2025;2030
Jindal steel and Power is right now technically and fundamentally strong stock. If it sustains above 796 the following targets are 1285, 2017, and 2836.
Conclusion: fundamentally and technically stocks must be held for the long term. Jindal Steel is one of them so before investment check all market conditions.