Jindal Steel Ltd.
NSE: JINDALSTELJindal Steel Ltd.: A 30-second snapshot
Jindal Steel and Power trades at ₹1,242.9, up 45.6% over 12 months and above both its 50-DMA (₹1,205.7) and 200-DMA (₹1,088.2), with RSI at 52.6 in neutral territory. The company reported Q4 profit surging approximately 5x quarter-on-quarter, driving a forward PE of 13.1 against a trailing PE of 37.9. However, debt-to-equity stands at 43.6 on a rising trend, free cash flow has been positive in only 2 of available historical years, and ROE of 6.77% has never crossed 15% in the persistence record.
P/E
37.9
Forward P/E
13.1
ROE
+6.8%
Debt / Equity
43.61
Profit Margin
+6.3%
Div. Yield
+0.2%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
42/100
News
6 headlines · 5 positive · 0 negative
Centrum Broking Upgrades Jindal Steel & Power to Buy from Neutral; Price Target is INR1,355 - marketscreener.com
marketscreener.com
Jindal Steel shares jump over 3% as Q4 profit surges 5x QoQ - Business Upturn
Business Upturn
JINDALSTEL: Capacity ramp-up drove 8% revenue and 18% PAT growth, with robust FY 2027 outlook - TradingView
TradingView
JINDALSTEL: FY26 saw robust growth in production, revenue, and profitability, with expanded capacity and improved ESG scores - TradingView
TradingView
JINDALSTEL: FY26 saw record steel output, revenue growth, and major capacity expansions, boosting profitability - TradingView
TradingView
Recent context
- ·Q4 results showed profit rising approximately 5x quarter-on-quarter, with the company attributing the improvement to capacity ramp-up, record steel output, and improved ESG metrics across FY26.
- ·Centrum Broking upgraded its stance on JINDALSTEL in early May 2026 with a price target of ₹1,355, citing the earnings trajectory — the stock trades at ₹1,242.9 as of the draft date, approximately 8.2% below that cited target.
- ·Nearest technical resistance sits at ₹1,272.1 and ₹1,306.2, while the closest support level is ₹1,201.1 — roughly 3.4% below the current price.
Strengths
- +Revenue has grown at a 23% five-year CAGR, with FY26 capacity expansions cited as driving 8% revenue and 18% PAT growth in the most recent reporting period.
- +Price is 14.2% above its 200-DMA (₹1,088.2) and 3.1% above its 50-DMA (₹1,205.7), with the 52-week drawdown limited to 4.85% from the high — indicating a technically constructive price structure relative to trend averages.
- +Forward PE of 13.1 is significantly below the trailing PE of 37.9 and below peer JSW Steel (42.6), reflecting market expectations of a substantial earnings recovery against which the forward multiple appears compressed.
- +News flow over the past two weeks has been uniformly positive across 5 of 6 articles, with reported Q4 results and capacity ramp-up cited as catalysts; Centrum Broking upgraded its rating on the stock during this period.
Weaknesses
- −Debt-to-equity of 43.6 is on a rising trend and far above typical metals-sector peers; with free cash flow positive in only 2 of available historical years, the company has limited internal capacity to service or reduce this debt organically.
- −ROE of 6.77% has never exceeded 15% in any year in the persistence dataset (roeYearsAbove15 = 0, consistencyScore = 0), indicating no demonstrated track record of generating returns above common cost-of-capital benchmarks.
- −Quality score of 34 out of 100 places JINDALSTEL 4th of 6 ranked peers in the Metals sector, behind TATASTEEL (44), JSWSTEEL (36), and HINDALCO (35), reflecting the combined drag of low ROE and poor FCF consistency.
- −Trailing PE of 37.9 is elevated for a metals company with a 6.33% profit margin; the valuation rests heavily on forward earnings recovery that, if delayed or smaller than priced, leaves the trailing multiple difficult to justify.
Open questions
- ?Does the sharp Q4 earnings recovery reflect a durable structural improvement in Jindal Steel's cost base and capacity utilisation, or is it cyclical and dependent on steel price levels that may not persist?
- ?Given that debt-to-equity is 43.6 and rising while free cash flow has been positive in only 2 of available historical years, what is the company's debt-servicing plan if steel prices soften or earnings fall short of forward estimates?
- ?The forward PE of 13.1 implies an earnings profile roughly 3x larger than what current trailing earnings justify — what specific volume, pricing, and margin assumptions underpin the analyst consensus, and how sensitive is the forward multiple to a 20% miss on those assumptions?
- ?ROE has never crossed 15% in the available historical record despite 23% five-year revenue CAGR — does capacity-led revenue growth translate into equity returns at a meaningful rate, or does the capital intensity of steel manufacturing structurally cap ROE?
Peer comparison: Metals
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| JINDALSTEL | Jindal Steel Ltd.You're viewing | 37.9 | +6.8% | 34 |
| Industry avg | across 5 peers | 31.2 | +13.7% | 34 |
| TATASTEEL | Tata Steel Ltd. | 30.0 | — | 44 |
| JSWSTEEL | JSW Steel Ltd. | 42.6 | — | 36 |
| HINDALCO | Hindalco Industries Ltd. | 15.3 | — | 35 |
| ADANIENT | Adani Enterprises Ltd. | 36.8 | +13.7% | 22 |
| DUMMYVEDL1 | Dummy Vedanta Ltd. 1 | — | — | — |
Technical state
Current price
₹1,242.90
SMA 50
₹1,205.69
SMA 200
₹1,088.17
RSI (14)
52.6 (neutral)
From 52w high
-4.8%
1Y return
+45.6%
3M return
+4.3%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 43.6 is exceptionally elevated for a metals manufacturer and the trend is rising. Free cash flow was positive in only 2 of the available historical years, indicating the company routinely consumes more cash than it generates from operations, compounding balance-sheet risk.
- highROE of 6.77% has never exceeded 15% in any year covered by the persistence data (roeYearsAbove15 = 0) and the consistency score is 0, indicating no track record of sustained equity returns above typical cost-of-capital thresholds.
- mediumTrailing PE of 37.9 versus forward PE of 13.1 implies the market is pricing in a sharp earnings recovery. If the anticipated earnings rebound does not materialise, the current valuation is difficult to support on a trailing basis.
- mediumQuality score of 34 ranks JINDALSTEL 4th of 6 peers in the Metals sector, below TATASTEEL (44), JSWSTEEL (36), and HINDALCO (35).
- lowNews sample is small at 6 articles total, limiting the statistical reliability of the sentiment signal.
Cross-section contradictions
- Stock is up 45.6% over 12 months and trades above both its 50-DMA (1,205.7) and 200-DMA (1,088.2), yet fundamental quality scores at the bottom of the sector peer group (qualityScore 34 vs peer median ~38) and ROE has never crossed 15% in available history — price momentum and fundamental quality diverge materially.
- Trailing PE of 37.9 (expensive on current earnings) sits alongside a forward PE of 13.1, implying the market expects roughly a 3x earnings jump; the trailing and forward pictures describe materially different earnings profiles.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days