metals

Jindal Steel

JINDALSTEL · Nifty 50

1,135.8

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionmetals sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score70/100 (STRONG). 1 positive flags, 3 concerns.
Historical Context150 similar technical setups. Average outcome: -15.0% decline. 0% positive.

Fundamental

70/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Jindal Steel scores 70/100 on fundamentals (strong). Jindal Steel: BROAD EXPANSION regime.

Fundamental Score: 70/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 4.7% broken into three drivers. Each shows how efficiently the company generates returns.

ROE4.7%=
4.3%Net Margin
×
0.6xTurnover
×
1.9xLeverage

ROE of 4.69% is modest margin-driven and stable. Net margin of 4.3% × asset turnover of 0.56x × leverage of 1.9x.

What This Means

Net margin of 4.3% means the company keeps ₹4.3 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.56x means the company efficiently uses its assets to generate revenue. Leverage of 1.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

51.6%

Operating

9.1%

Net

4.3%

improving

Gross margin 51.6% → operating margin 9.1% → net margin 4.3%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 3.0x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

ADEQUATE

Interest covered 3.4x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.8x is moderate.

Free Cash Flow

MODERATE

FCF margin negative at -4.3% — spending more than earning. Check capex cycle.

Peer Comparison

Jindal Steel is compared against 10 peers in the metals sector.

Key Watchpoints

🟢

Breaks above ₹1193 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1079 (-5%)

Further downside risk

🟢

Metals sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (22.8%) than equity (7.9%)
✅ High Earnings Quality: Cash flow covers earnings 3.0x — strong cash conversion

Risk Flags

🔴 2 Critical⚠️ 1 Warning1 Positive4 total flags
🔴Unusual items are 36% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 10% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹871K Cr. May indicate restructuring, impairment, or one-time costs.

High promoter holding: 64%
Governance

Strong insider alignment. Promoters have significant skin in the game.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
34.7UNAVAILABLE
P/B Ratio
2.3HIGH
Market Cap
₹11685851.3L CrHIGH
From 52W High
87% of high
Sector Peers
10
Jindal Steel Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight