Mehabe score: 4 G Factor: 6 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 5.
Description
Jindal Saw is engaged in a leading global manufacturer and supplier of Iron & Steel pipes and pellets having manufacturing facilities in India.(Source : 201903 Annual Report Page No: 88)Site:JINDALSAWMain Symbol:JINDALSAW
Stock trades at 139.0, above its 50dma 115.81. It also trades above its 200dma 90.59. The stock remains bullish on techicals
The 52 week high is at 147.65 and the 52week low is at 54.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.64 times its book value
– has delivered good profit growth of 65.60% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 6.72% over past five years.
– has a low return on equity of 8.94% for last 3 years.
-Contingent liabilities of Rs.1860.22 Cr.
Competition
– The industry trades at a mean P/E of 12.7x. APL Apollo Tubes trades at the industry’s max P/E of 60.55x. JINDALSAW trades at a P/E of 14.0x
– Industry’s mean G-Factor is 5.9 while the mean Piotski score is 8.0. JINDALSAW has a G-Factor of 6 and Piotski scoreof 5.
– Average 1 month return for industry is 20.0%. The max 1- month return was given by Jindal Stain.: a return of 48.02 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 2885.0 cr compared to Rs 1641.0 cr for period ended Jun 2020, a rise of 75.8%
Operating Profits reported at Rs 422.0 cr for period ended Jun 2021 vis-vis 183.0 for period ended Jun 2020 .
Operating Margins expanded 347.6 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 4.76 compared to Rs 5.76 for previous quarter ended Mar 2021 and Rs -0.29 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 11907.0 cr for period ended TTM vis-vis sales of Rs 10664.0 cr for the period ended Mar 2021, a healthy growth of 10.4%. The 3 year sales cagr stood at -0.6%.
Net Profit reported at Rs 480.0 cr for period ended TTM vis-vis sales of Rs 319.0 cr for the period ended Mar 2021, rising 33.5%.
Company reported a poor Net Profit CAGR of -17.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 5.0% compared to 9.0% over the last 3 Years. – The stock has given a return of 148% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is -43% vis-vis a compounded profit growth of 21% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 10.13% vis-vis 9.54% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 25.21% vis-vis 25.7% for Mar 2021
Conclusion
– Stock is trading at 0.64 times its book value
– has delivered good profit growth of 65.60% CAGR over last 5 years – The company has delivered a poor sales growth of 6.72% over past five years.
– has a low return on equity of 8.94% for last 3 years.
-Contingent liabilities of Rs.1860.22 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 115.81 and is trading at 139.0, thus bullish price action wise.
