Fact based stock research
Jindal Steel (NSEI:JINDALSTEL)
INE749A01030
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Jindal Steel stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), Jindal Steel (Steel, India) shares have above-average financial characteristics compared with similar stocks. Shares of Jindal Steel are low in value (priced high) with a consolidated Value Rank of 40 (worse than 60% of alternatives), and are riskily financed (Safety Rank of 44, which means above-average debt burdens) but show above-average growth (Growth Rank of 88). ...read more
RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on Jindal Steel's financial characteristics. As the company Jindal Steel shows low value with an Obermatt Value Rank of 40 (60% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 88% of comparable companies (Obermatt Growth Rank is 88). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 44 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Jindal Steel, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | India |
Industry | Steel |
Index | R/E Growth Markets |
Size class | X-Large |
This stock has achievements: Top 10 Stock.
21-Mar-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Jindal Steel
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 54 |
|
59 |
|
48 |
|
40 |
|
GROWTH | ||||||||
GROWTH | 36 |
|
36 |
|
93 |
|
88 |
|
SAFETY | ||||||||
SAFETY | 37 |
|
41 |
|
50 |
|
44 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
30 |
|
47 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
23 |
|
75 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 70 (better than 70% compared with investment alternatives), Jindal Steel (Steel, India) shares have above-average financial characteristics compared with similar stocks. Shares of Jindal Steel are low in value (priced high) with a consolidated Value Rank of 40 (worse than 60% of alternatives), and are riskily financed (Safety Rank of 44, which means above-average debt burdens) but show above-average growth (Growth Rank of 88). ...read more
RECOMMENDATION: A Combined Rank of 70, is a buy recommendation based on Jindal Steel's financial characteristics. As the company Jindal Steel shows low value with an Obermatt Value Rank of 40 (60% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 88% of comparable companies (Obermatt Growth Rank is 88). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 44 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Jindal Steel, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 54 |
|
59 |
|
48 |
|
40 |
|
GROWTH | ||||||||
GROWTH | 36 |
|
36 |
|
93 |
|
88 |
|
SAFETY | ||||||||
SAFETY | 37 |
|
41 |
|
50 |
|
44 |
|
COMBINED | ||||||||
COMBINED | 51 |
|
39 |
|
86 |
|
70 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 40 (worse than 60% compared with alternatives), Jindal Steel shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Jindal Steel. Price-to-Profit (also referred to as price-earnings, P/E) is 56 which means that the stock price compared with what market professionals expect for future profits is lower than for 56% of comparable companies, indicating a good value concerning Jindal Steel's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 52, which means that the stock price is lower as regards to invested capital than for 52% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 52% of alternatives (only 48% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 75% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 40, is a hold recommendation based on Jindal Steel's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 58 |
|
75 |
|
58 |
|
48 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 78 |
|
73 |
|
69 |
|
56 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 66 |
|
80 |
|
52 |
|
52 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 1 |
|
18 |
|
31 |
|
25 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 54 |
|
59 |
|
48 |
|
40 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 88 (better than 88% compared with alternatives) for 2024, Jindal Steel shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Jindal Steel. Sales Growth has a rank of 64 which means that currently, professionals expect the company to grow more than 64% of its competitors. Capital Growth is also above 48% of competitors with a rank of 90, and Stock Returns with the rank of 73 is also an outperformance. Only Profit Growth is low with a rank of 48 which means that currently, professionals expect the company to grow its profits less than 52% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 88, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Jindal Steel is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 19 |
|
17 |
|
70 |
|
64 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 88 |
|
45 |
|
58 |
|
48 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
44 |
|
73 |
|
90 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 50 |
|
67 |
|
69 |
|
73 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 36 |
|
36 |
|
93 |
|
88 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 44 (better than 44% compared with alternatives), the company Jindal Steel has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Jindal Steel is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Jindal Steel and the other two below average. Leverage is at a rank of 56 meaning the company has a below-average debt-to-equity ratio. It has less debt than 56% of its competitors.Refinancing is at a rank of 26, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 74% of its competitors. Liquidity is at a rank of 46, meaning that the company generates less profit to service its debt than 54% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 44 (worse than 56% compared with alternatives), Jindal Steel has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Jindal Steel are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Jindal Steel and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 22 |
|
28 |
|
56 |
|
56 |
|
REFINANCING | ||||||||
REFINANCING | 62 |
|
37 |
|
23 |
|
26 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 40 |
|
49 |
|
48 |
|
46 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 37 |
|
41 |
|
50 |
|
44 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
93 |
|
52 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
50 |
|
47 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
4 |
|
44 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
25 |
|
36 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
30 |
|
47 |
|
new |
Stock analysis by the purely fact based Obermatt Method for Jindal Steel from March 21, 2024.
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