JINDAL SUPREME (INDIA) L

Basic Materials — Steel · NSE

₹161.79−₹1.55 (−0.95%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

The 60-second version of JINDAL SUPREME (INDIA) L — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jindal Supreme (India) Limited engages in the manufacturing and supply of steel pipes and tubes for infrastructure and industrial applications in India.

IndustrySteel

SectorBasic Materials

Employees242

Annual revenue₹619 Cr

How does it make money?

Turns over ₹619 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 242 employees supports ₹2.56 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.56 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 29.1% 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 +31% while net margin moved +2611% 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+31%

Margin effect+2611%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

47/ 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

33.7x

Sector Median

18.2x

median of 4 sector peers

⚠️Against its sector it trades 85% above the peer median of 18.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

18.2x median of 4 peers · +85%

vs. generic bands

Fair

15x–35x

EV/EBITDA

22.7x

PEG

0.15

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 2.0% to 6.7% over 3 years.
Return on equity is rising
ROE has improved from 1.5% to 23.3%.
Return on capital is rising
ROCE has improved from 10.5% to 29.1%.
High return on capital employed
ROCE of 29.1% 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

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 67% over 3 years, from ₹73 Cr to ₹123 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 108% against revenue up 31% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 59% against revenue up 31% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 29.1% 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 2.0% to 6.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 59% against revenue up 31%. 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 85% above the peer median. That premium needs a reason that persists, or it closes.
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
Micro 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 5%✓ 6.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹15 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 9.4% CAGR
Latest reported year was 11.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 26%✓ 29.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 10 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

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹826 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.7x

Fair

Fairly valued against the generic band

P/B Ratio

6.21x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹4.8

Profitable

Profitable on a per-share basis

ROE

23.3%

Strong

Strong capital efficiency

ROCE

29.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.91x

Moderate

Moderate leverage

Revenue Growth (YoY)

11.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

31.0%

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

-₹15 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.7%

Average

Average margins

Net Margin

3.5%

Average

Average bottom-line conversion

Current Ratio

1.40

Comfortable

Healthy short-term liquidity

52W Range Position

44%

Mid-range

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹473 Cr	₹605 Cr	₹543 Cr	₹619 Cr	+9.4%
EBITDA	₹9 Cr	₹23 Cr	₹28 Cr	₹42 Cr	+64.6%
EBITDA Margin	2.0%	3.8%	5.1%	6.7%	—
PAT (Net Profit)	₹1 Cr	₹13 Cr	₹24 Cr	₹23 Cr	+228.7%
EPS	₹0.12	₹2.52	₹4.76	₹4.42	+228.7%
ROE	1.5%	25.6%	32.5%	23.3%	—
ROCE	10.5%	25.8%	34.8%	29.1%	—
Total Debt	₹73 Cr	₹108 Cr	₹99 Cr	₹123 Cr	+18.7%
Free Cash Flow	-₹10 Cr	-₹35 Cr	-₹5 Cr	-₹15 Cr	—

🟢 Revenue has grown at 9.4% a year over 3 years.

🟢 EBITDA has grown at 64.6% a year over 3 years.

🟢 EBITDA Margin has risen from 2.0% to 6.7% over 3 years (+4.8 pts).

🟢 PAT (Net Profit) has grown at 228.7% a year over 3 years.

🟢 EPS has grown at 228.7% a year over 3 years.

🟢 ROE has risen from 1.5% to 23.3% over 3 years (+21.7 pts).

🟢 ROCE has risen from 10.5% to 29.1% over 3 years (+18.6 pts).

🔴 Total Debt has grown at 18.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹248 Cr

Total Liabilities

₹152 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹9 Cr

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

6 general

JINDAL SUPREME (INDIA) L Share Price - Live NSE: JSIPL Stock Price & Chart

Upstox, 16 Oct

Jindal Supreme (India) Ltd. Share Price Live Today

CNBC TV18, 16 Oct

JINDAL SUPREME (INDIA) Lower Circuit Streak: Day 2 Price and Data

Univest, 13 Oct

JINDAL SUPREME (INDIA) LIMITED (JSIPL.BO) valuation measures and financial statistics

Yahoo Finance UK, 15 Oct

Jindal Supreme (India) (JSIPL) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Compare with

Equitymaster, 15 Oct

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Profitability

MiddlingBusiness Quality · Financial Health

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑