Jindal Saw Limited

Basic Materials — Steel · NSE

₹301.60+₹2.40 (+0.80%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jindal Saw Limited engages in the manufacture and supply of iron and steel pipes, and pellets in India and internationally.

IndustrySteel

SectorBasic Materials

Employees7,565

Annual revenue₹17,276 Cr

How does it make money?

Turns over ₹17,276 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 7,565 employees supports ₹2.28 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.28 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 9.7% 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 is the outlook?

2 analysts covering the stock expect revenue to grow about 16.8% and earnings to grow about 68.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.8%

Est. earnings growth+68.2%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +1% while net margin moved +50% 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+1%

Margin effect+50%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.1% is weak

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

35/ 100

Expensive

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

35.1x

3Y Median

11.7x

40 monthly readings · mean 14.4x · range 6.0x–32.0x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 200% above its 3y median of 11.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 93% above the peer median of 18.2x.

vs. its own history

Expensive

11.7x median over 40 months · +200%

vs. sector peers

Expensive

18.2x median of 4 peers · +93%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

10.8x

PEG

2.38

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 9.8% to 12.6% over 3 years.
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

2 items require attention · 2 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.0x to 3.5x.
🟡Inventory building faster than salesFinancial
Inventory up 28% against revenue up 1% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.8% to 12.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹695 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?

The price already assumes success
The stock trades 200% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 0.4% 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 11%✓ 12.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.5x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 0.4% CAGR
Latest reported year was 5.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹695 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹19,231 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.59

Profitable

Profitable on a per-share basis

ROE

4.1%

Weak

Weak capital efficiency

ROCE

9.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

5.6%

Modest

Modest growth

Profit Growth (YoY)

-68.9%

Falling

Profits are shrinking

Dividend Yield

0.66%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,549 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

12.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

3.2%

Average

Average asset productivity

Operating Margin

2.1%

Weak

Thin margins leave little room for error

Net Margin

3.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

89%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

283.7 / 287.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹17,093 Cr	₹20,092 Cr	₹20,040 Cr	₹17,276 Cr	+0.4%
EBITDA	₹1,674 Cr	₹3,341 Cr	₹3,419 Cr	₹2,183 Cr	+9.3%
EBITDA Margin	9.8%	16.6%	17.1%	12.6%	—
PAT (Net Profit)	₹644 Cr	₹1,677 Cr	₹1,738 Cr	₹973 Cr	+14.8%
EPS	₹10.14	₹26.33	₹27.22	₹15.23	+14.5%
ROE	8.1%	16.6%	15.2%	7.7%	—
ROCE	11.6%	22.0%	20.4%	9.7%	—
Total Debt	₹4,927 Cr	₹5,727 Cr	₹4,825 Cr	₹4,674 Cr	-1.7%
Free Cash Flow	₹1,293 Cr	₹1,730 Cr	₹1,304 Cr	₹695 Cr	-18.7%

🟡 Revenue has been broadly flat over 3 years (0.4% a year).

🟢 EBITDA has grown at 9.3% a year over 3 years.

🟢 EBITDA Margin has risen from 9.8% to 12.6% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 14.8% a year over 3 years.

🟢 EPS has grown at 14.5% a year over 3 years.

🟡 ROE has held roughly flat at 7.7% over 3 years.

🔴 ROCE has fallen from 11.6% to 9.7% over 3 years (-1.9 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.7% a year).

🔴 Free Cash Flow has shrunk at 18.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21,686 Cr

Total Liabilities

₹9,403 Cr

Cash & Equivalents

₹407 Cr

Operating Cash Flow

₹1,771 Cr

Capex

-₹1,076 Cr

Shareholding (proxy)

Institutional Holding

16.2%

Insider Holding

63.6%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

22 May 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹360

+19.4% vs CMP

Target Range

₹302 – ₹418

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

3 mixed3 general

Jindal Saw (NSEI:JINDALSAW) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

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

Jindal Saw Q2 consolidated PAT falls to ₹470 million

scanx.trade, 18 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Compare with Jindal Saw

Equitymaster, 17 Oct

Breakout stocks: Bonanza picks Jindal Saw, BHEL, Allied Blenders

Business Standard, 15 Oct

Jindal Saw Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Jindal Saw Share Price Falls 4% as Company Reports Q1 FY27 Results; PAT Declines to Rs 90.79 Crore

Dalal Street Investment Journal, 14 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Risk

WeakProfitability · Valuation

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.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Revenue growth stays above 4% a year · see Key things to watch ↑