Jindal Steel & Power Limited (JINDALSTEL.NS) stock analysis

In our weekly check, Jindal Steel & Power Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 4, red flags: 8.

About Jindal Steel & Power Limited

Jindal Steel & Power Limited is a Basic Materials company (Steel) based in India, listed on NSE as JINDALSTEL.NS.

What our checks show for JINDALSTEL.NS

Red flags

• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• The net margin fell by 4.9 points over 5 years, to 6.3%: the company keeps less of each sale as profit.
• The gross margin fell by 15.1 points, to 44.2%: costs are rising faster than prices.
• Free cash flow is negative (-8.2% of revenue): the business spends more cash than it brings in.
• The dividend takes 576% of profit: little cushion if profit falls.
• The stock has fallen as much as 93% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 7.6 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Revenue grew only 0.3% a year over the last 3 years.
• The net margin is only 6.3%: little room if costs rise.
• The price is 37.8 times earnings (P/E): the market already pays for a lot of future growth.
• Return on capital (ROCE) is only 7.7%.

Strengths

• Operating cash flow is 1.54x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 44.4% a year over the next years.
• Analysts expect revenue to grow about 18.8% a year over the next years.
• Analysts expect the net margin to improve by 6.2 points from today's 6.3%.
• A large company: market value $11.37 billion.
• Beta 0.69: the stock usually moves less than the market.

Similar companies

5411.T · APLAPOLLO.NS · NMDC.BO · TATASTEEL.NS · JSL.NS · JSWSTEEL.NS

Questions

What grade does Jindal Steel & Power Limited (JINDALSTEL.NS) have?

In our weekly check, Jindal Steel & Power Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 4, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of JINDALSTEL.NS stock?

This week's biggest flags for Jindal Steel & Power Limited: Weak interest cover, Margins falling, Gross margin falling. In total 12 of 25 checks show a warning or a red flag.

What does Jindal Steel & Power Limited do?

Jindal Steel & Power Limited is a Basic Materials company (Steel) based in India, listed on NSE as JINDALSTEL.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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