Jayaswal Neco Industries Limited

Basic Materials — Steel · NSE

₹100.40+₹4.05 (+4.20%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

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 Jayaswal Neco Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jayaswal Neco Industries Limited engages in the manufacture and sale of ally steel, and iron and steel castings in India. It operates through Steel; Iron and Steel Castings; and Other segments.

IndustrySteel

SectorBasic Materials

Employees4,408

Annual revenue₹7,113 Cr

How does it make money?

Turns over ₹7,113 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 4,408 employees supports ₹1.61 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.61 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?Some evidence

ROCE of 23.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +12% while net margin moved +82% 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+12%

Margin effect+82%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.95 — moves roughly with the market
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

81/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.2x

3Y Median

21.0x

40 monthly readings · mean 34.4x · range 13.1x–95.5x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 33% below its 3y median of 21.0x. 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 22% below the peer median of 18.2x.

vs. its own history

Cheap

21.0x median over 40 months · -33%

vs. sector peers

Cheap

18.2x median of 4 peers · -22%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.0x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 12.9% to 18.4% over 3 years.
Debt is being paid down
Total debt is down 38% over 3 years.
Cash generation is improving
Free cash flow is up 86% over 3 years.
Return on equity is rising
ROE has improved from 11.0% to 16.3%.
High return on capital employed
ROCE of 23.4% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 12.9% to 18.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 38% 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 33% 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.
Cheaper than its peers
It trades 22% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 16%✓ 18.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 4.0% CAGR
Latest reported year was 27.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹1,251 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

9 / 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

7 good · 4 neutral · 0 weak

Market Cap

₹9,749 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.2x

Cheap

Cheap against the generic band

P/B Ratio

3.43x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.09

Profitable

Profitable on a per-share basis

ROE

16.3%

Strong

Strong capital efficiency

ROCE

23.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.75x

Moderate

Moderate leverage

Revenue Growth (YoY)

27.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

108.3%

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

₹1,251 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.1%

Good

Healthy core-business profitability

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

1.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.95

Market-like

Moves roughly in line with the market

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

92.7 / 93.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

70.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,332 Cr	₹5,926 Cr	₹5,985 Cr	₹7,113 Cr	+4.0%
EBITDA	₹815 Cr	₹1,038 Cr	₹947 Cr	₹1,306 Cr	+17.0%
EBITDA Margin	12.9%	17.5%	15.8%	18.4%	—
PAT (Net Profit)	₹227 Cr	₹210 Cr	₹113 Cr	₹463 Cr	+26.9%
EPS	₹2.34	₹2.16	₹1.16	₹4.77	+26.8%
ROE	11.0%	9.3%	4.7%	16.3%	—
ROCE	23.2%	14.1%	13.7%	23.4%	—
Total Debt	₹3,414 Cr	₹3,235 Cr	₹2,753 Cr	₹2,124 Cr	-14.6%
Free Cash Flow	₹673 Cr	₹491 Cr	₹1,144 Cr	₹1,251 Cr	+23.0%

🟢 Revenue has grown at 4.0% a year over 3 years.

🟢 EBITDA has grown at 17.0% a year over 3 years.

🟢 EBITDA Margin has risen from 12.9% to 18.4% over 3 years (+5.5 pts).

🟢 PAT (Net Profit) has grown at 26.9% a year over 3 years.

🟢 EPS has grown at 26.8% a year over 3 years.

🟢 ROE has risen from 11.0% to 16.3% over 3 years (+5.3 pts).

🟡 ROCE has held roughly flat at 23.4% over 3 years.

🟢 Total Debt has shrunk at 14.6% a year over 3 years.

🟢 Free Cash Flow has grown at 23.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,970 Cr

Total Liabilities

₹3,129 Cr

Cash & Equivalents

₹126 Cr

Operating Cash Flow

₹1,367 Cr

Capex

-₹116 Cr

Shareholding (proxy)

Institutional Holding

0.4%

Insider Holding

68.2%

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 positive1 mixed4 general

With EPS Growth And More, Jayaswal Neco Industries (NSE:JAYNECOIND) Makes An Interesting Case

Simply Wall Street, 22 Aug

Market Trading Guide: Jayaswal Neco Industries among 2 stock recommendations for Monday

The Economic Times, 23 Aug

Jayaswal Neco Industries Ltd leads losers in 'A' group

Business Standard, 20 Jul

Jayaswal Neco Q2FY27 Results: Net profit jumps 118% YoY to ₹230 crore

scanx.trade, 17 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Jayaswal Neco Industries - FIIs double stakes in 14 stocks; rally up to 400% in a year, 5 turn multibaggers

The Economic Times, 29 Jun

Jayaswal Neco Industries Share Price Target 2026: Rs 105 Analyst Forecast

Univest, 24 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

2 of 5 tripwires tripped — Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑