Jai Balaji Industries Limited

Basic Materials — Steel · NSE

₹72.01−₹2.90 (−3.87%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Jai Balaji Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jai Balaji Industries Limited manufactures and markets iron and steel products in India. The company provides TMT bars, cement, sponge iron, pig iron, ductile iron pipe, ferro chrome, billet, coke, sinter, ductile iron pipes, and alloy carbon and mild steel billets and rounds.

IndustrySteel

SectorBasic Materials

Employees4,220

Annual revenue₹5,711 Cr

How does it make money?

Turns over ₹5,711 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 4,220 employees supports ₹1.35 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.35 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -5% while net margin moved +138% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-5%

Margin effect+138%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.8% is weak
✗ ROE has fallen by 4.6 points over the period

Quality vs. Valuation

Company Quality

51/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

45.6x

3Y Median

65.8x

40 monthly readings · mean 90.3x · range 8.8x–312.1x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 65.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 151% above the peer median of 18.2x.

vs. its own history

Cheap

65.8x median over 40 months · -31%

vs. sector peers

Expensive

18.2x median of 4 peers · +151%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.8x

PEG

1.47

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 52% over 3 years.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.4% to 5.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.7% to 10.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Inventory building faster than salesFinancial
Inventory up 73% against revenue up -5% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 14.4x to 4.4x.
🟡Receivables growing faster than salesFinancial
Receivables up 44% against revenue up -5% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 25% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 52% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 31% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹110 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 44% against revenue up -5%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 151% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 10.4% to 5.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 4%✓ 6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹110 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹6,569 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

45.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.96x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.58

Profitable

Profitable on a per-share basis

ROE

5.8%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

24.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹110 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.1%

Average

Average margins

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

65.9 / 66.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,038 Cr	₹6,289 Cr	₹6,115 Cr	₹5,711 Cr	-1.8%
EBITDA	₹471 Cr	₹1,415 Cr	₹922 Cr	₹371 Cr	-7.7%
EBITDA Margin	7.8%	22.5%	15.1%	6.5%	—
PAT (Net Profit)	₹58 Cr	₹880 Cr	₹558 Cr	₹130 Cr	+31.0%
EPS	₹0.82	₹1.99	₹6.18	₹1.42	+20.0%
ROE	10.4%	58.5%	26.3%	5.8%	—
ROCE	15.7%	55.8%	35.9%	10.2%	—
Total Debt	₹860 Cr	₹473 Cr	₹559 Cr	₹417 Cr	-21.5%
Free Cash Flow	₹228 Cr	₹457 Cr	-₹47 Cr	₹110 Cr	-21.7%

🟡 Revenue has been broadly flat over 3 years (-1.8% a year).

🔴 EBITDA has shrunk at 7.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.8% to 6.5% over 3 years (-1.3 pts).

🟢 PAT (Net Profit) has grown at 31.0% a year over 3 years.

🟢 EPS has grown at 20.0% a year over 3 years.

🔴 ROE has fallen from 10.4% to 5.8% over 3 years (-4.6 pts).

🔴 ROCE has fallen from 15.7% to 10.2% over 3 years (-5.6 pts).

🟢 Total Debt has shrunk at 21.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 21.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,077 Cr

Total Liabilities

₹1,820 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹358 Cr

Capex

-₹248 Cr

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

79.6%

Corporate Actions

Ex-Dividend Date

15 Sept 2011

Analyst Consensus

Target Price (Mean)

₹133

+84.7% vs CMP

Target Range

₹133 – ₹133

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 mixed5 general

JAI BALAJI Share Price - Live NSE: JAIBALAJI Stock Price & Chart

Upstox, 16 Oct

Price Band Hitters Today, October 15, 2026 at 12:00 PM

HDFC Sky, 15 Oct

Jai Balaji Industries (JAIBALAJI.NS) Eases to ₹61.12 as Stock Hovers Near Key Support Zone - Dark Pool Prints

https://www.siam.in/, 05 Oct

Jai Balaji Industries to join GIA Metals Day on September 29

scanx.trade, 23 Sept

Above All Moving Averages and Now at Upper Circuit: Jai Balaji Industries Ltd Gains 8.9% in a Single Session

MarketsMojo, 15 Oct

Usha Martin, Jai Balaji Industries shares jump up to 12% on heavy volumes

Business Standard, 25 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation · Risk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑