Jindal Stainless Limited

Basic Materials — Steel · NSE

₹733.60+₹8.95 (+1.24%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jindal Stainless Limited manufactures and sells stainless-steel flat products in India and internationally.

IndustrySteel

SectorBasic Materials

Employees6,838

Annual revenue₹42,839 Cr

How does it make money?

Turns over ₹42,839 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 6,838 employees supports ₹6.26 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.26 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 17.8% 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 is the outlook?

14 analysts covering the stock expect revenue to grow about 12.7% and earnings to grow about 23.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.7%

Est. earnings growth+23.1%

Analysts14

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +20% while net margin moved +25% 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+20%

Margin effect+25%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.4% — barely ahead of inflation
• Profit CAGR of 14.7%

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

61/ 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

18.6x

3Y Median

22.5x

40 monthly readings · mean 22.7x · range 17.2x–32.0x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 17% below its 3y median of 22.5x. 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 is priced broadly in line with the peer median of 18.2x.

vs. its own history

Fair

22.5x median over 40 months · -17%

vs. sector peers

Fair

18.2x median of 4 peers · +2%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.5x

PEG

1.26

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 10.6% to 13.7% 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 high

🔴Debt has risen sharplyFinancial
Total debt is up 88% over 3 years, from ₹3,958 Cr to ₹7,460 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 10.6% to 13.7%. 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 ₹737 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?

Growth barely outpaces inflation
Revenue compounding at 6.4% 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.
Several serious flags at once
2 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 12%✓ 13.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.4% CAGR
Latest reported year was 10.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹737 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹60,445 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

18.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.05x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹39.37

Profitable

Profitable on a per-share basis

ROE

16.1%

Strong

Strong capital efficiency

ROCE

17.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

10.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7.6%

Modest

Slow profit growth

Dividend Yield

0.55%

Modest

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

Free Cash Flow

₹737 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

14.2x

Improving

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

Operating Margin

9.1%

Average

Average margins

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

1.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

734.9 / 731.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹35,574 Cr	₹38,414 Cr	₹39,191 Cr	₹42,839 Cr	+6.4%
EBITDA	₹3,757 Cr	₹4,826 Cr	₹4,822 Cr	₹5,873 Cr	+16.1%
EBITDA Margin	10.6%	12.6%	12.3%	13.7%	—
PAT (Net Profit)	₹2,115 Cr	₹2,713 Cr	₹2,505 Cr	₹3,193 Cr	+14.7%
EPS	₹25.68	₹32.94	₹30.41	₹38.7	+14.6%
ROE	17.7%	18.9%	15.0%	16.1%	—
ROCE	18.8%	19.6%	16.9%	17.8%	—
Total Debt	₹3,958 Cr	₹6,052 Cr	₹6,402 Cr	₹7,460 Cr	+23.5%
Free Cash Flow	₹1,440 Cr	₹3,343 Cr	₹2,833 Cr	₹737 Cr	-20.0%

🟢 Revenue has grown at 6.4% a year over 3 years.

🟢 EBITDA has grown at 16.1% a year over 3 years.

🟢 EBITDA Margin has risen from 10.6% to 13.7% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 14.7% a year over 3 years.

🟢 EPS has grown at 14.6% a year over 3 years.

🔴 ROE has fallen from 17.7% to 16.1% over 3 years (-1.6 pts).

🟡 ROCE has held roughly flat at 17.8% over 3 years.

🔴 Total Debt has grown at 23.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 20.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹40,704 Cr

Total Liabilities

₹20,821 Cr

Cash & Equivalents

₹415 Cr

Operating Cash Flow

₹3,395 Cr

Capex

-₹2,658 Cr

Shareholding (proxy)

Institutional Holding

16.9%

Insider Holding

64.7%

Corporate Actions

Next Earnings

13 Nov 2026

Dividend Rate

₹4

Ex-Dividend Date

21 Aug 2026

Analyst Consensus

Recommendations

14 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹882.27

+20.3% vs CMP

Target Range

₹790 – ₹1,000

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 positive3 mixed2 general

Jindal Stainless Share Price - Live NSE: JSL Stock Price & Chart

Upstox, 16 Oct

Jindal Stainless Share Price rises 2.02%: key analysis

Univest, 16 OctPrice 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.

JSL Overseas Holding Limited Increases Stake in Jindal Stainless to 17.04%

scanx.trade, 17 Oct

Jindal Stainless Deploys Electric Trucks; Shares Rise 0.55%

HDFC Sky, 15 OctPrice 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.

Jindal Stainless Q1FY27: Profit rises 7.6% to ₹769 crore, revenue up 11%

Business Standard, 03 AugResults

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

Jindal Stainless Limited (NSE:JSL) Yearly Results: Here's What Analysts Are Forecasting For This Year

Simply Wall Street, 07 MayAnalyst 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.

DalalBaazaar Thesis

StrongFinancial Health · Profitability · Risk

MiddlingBusiness Quality · Growth · 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 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑