JINDAL STAINLESS LTD INSERT LOGO

(JSL | BSE CODE: 532508)

INR 549.45
52 Week (High – INR 567.2 & Low – 202.75)

About the Company

Jindal Stainless (JSL), is among largest stainless steel manufacturing companies in the world & India's largest
stainless steel manufacturer.It was founded by Shri OP Jindal in 1980 having its registered office at Hisar, Haryana.
As of December 2023, it has setup intergrated stainless steel plant in Jajpur, Odisha and Hisar, Haryana which have
capacity of 2.2MTPA and 0.8MTPA. As on December 2023, JSL had more than 21000 manpower(including
contractual). It manufactures Stainless Steel flat products, in Austenitic, Ferritic, Martensitic and Duplex grades in
India used in a variety of industries like automobile, railways, construction, consumer goods etc.

Financial Summary
Operating Revenue (INR Crs.) Net Profit (INR Crs.) Financial Leverage
Financial Leverage
3,079
35,697 4.0x
32,733 3.6x
2,115
2.6x
2.3x
12,951 12,188
419
71

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Return on Assets Return on Equity Return onon

Return Capital Employed
Capital Employed
18.67%
33.41%
47.73%

15.46%
8.38%
19.16% 9.95%
14.17%
3.92% 5.01%
0.68% 2.74%

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Recent Performance Highlights

• Jindal Stainless Limited reported a 120% YoY increase in its consolidated net profit at ₹764.03 Cr.
• The company also reported a 12% YoY growth in its consolidated revenue from operations at ₹9,797.04
Cr during the quarter under review.
• The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 80% YoY and stood
at ₹1,231 Cr.
• JSL’s total income rose to ₹9,828.97 Cr during Q2 of FY 2023-24, up from ₹8,776.61 Cr that was
reported in the corresponding period last year.
• Jindal Stainless aims to reduce carbon emissions by 50 per cent "way ahead" of its targeted year of
2035 on the back of various sustainability projects.
• Release Of Pledge On The Equity Shares Held By The Promoters & Promoter Group.
• JSL will exit its Indonesia operations due to “unfavourable market conditions” caused primarily by
Chinese dumping rendering operations there unviable and high tax on exports (from the Asian nation)
into key geographies like the USA and Europe.

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Dupont Analysis - Return on Equity & Return on Asset
RETURN ON EQUITY (ROE)
Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT 72.6 419.5 3109.4 2083.8
AVERAGE SHAREHOLDERS EQUITY 2654.0 2961.2 6514.1 10877.1
RETURN ON EQUITY 2.74% 14.17% 47.73% 19.16%

ROE - DUPONT EQUATION

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT 72.6 419.5 3109.4 2083.8
REVENUE 12950.9 12188.5 32732.7 35697.0
NET PROFIT MARGIN (A) 0.56% 3.44% 9.50% 5.84%

REVENUE 12,950.9 12,188.5 32,732.7 35,697.0

AVERAGE TOTAL ASSETS 10,696.1 10,706.0 16,655.2 24,858.1
ASSET TURNOVER RATIO (B) 1.2x 1.1x 2.0x 1.4x

AVERAGE TOTAL ASSETS 10,696.1 10,706.0 16,655.2 24,858.1

AVERAGE SHAREHOLDERS EQUITY 2,654.0 2,961.2 6,514.1 10,877.1
EQUITY MULTIPLIER (C) 4.0x 3.6x 2.6x 2.3x

RETURN ON EQUITY (A*B*C) 2.74% 14.17% 47.73% 19.16%

RETURN ON ASSETS (ROA)

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT 72.6 419.5 3,109.4 2,083.8
AVERAGE TOTAL ASSETS 10,696.1 10,706.0 16,655.2 24,858.1
RETURN ON ASSETS 0.68% 3.92% 18.67% 8.38%

ROA - DUPONT EQUATION

Mar-20 Mar-21 Mar-22 Mar-23
NET PROFIT 72.6 419.5 3,109.4 2,083.8
REVENUE 12,950.9 12,188.5 32,732.7 35,697.0
NET PROFIT MARGIN (A) 0.56% 3.44% 9.50% 5.84%

REVENUE 12,950.9 12,188.5 32,732.7 35,697.0

AVERAGE TOTAL ASSETS 10,696.1 10,706.0 16,655.2 24,858.1
ASSET TURNOVER RATIO (B) 1.21x 1.14x 1.97x 1.44x

RETURN ON ASSETS (A*B) 0.68% 3.92% 18.67% 8.38%

Dupont Summary :
• ROE of Jindal Stainless Ltd has been decreased to 2.74% during COVID and made a low of 14.17% in FY2021 and now
rose to precovid levels and currently at 19.16% as of March 2023.
• ROE has been increased significantly in past 7 years from 5% to 19.16% while the company was able to increase the
net margins from 1% in FY2017 to 5.84% in FY2023. The reason for increase in ROE, Asset Efficiency of the company
is increased from 0.85x in FY2017 to 1.4x in FY2023 and Financial leverage of company is been decreased from 8.68x
in FY2017 to 2.3x in FY2023.
• ROA of Jindal Stainless has been incresed from 0.8% in FY2017 to 8.38% in FY2023, the reason for increase in ROA is
increase in net margins of the company and also the asset efficiency has been increased.
Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only.The author of the report is not liable for any losses due to actions
taken basis this report. It is advisable to consult SEBI registered research analyst before making any investments

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