JSL Hisar Limited is a publicly-traded company listed on India’s National Stock Exchange (NSE). The company primarily manufactures and sells iron and steel products, including pig iron, sponge iron, billets, and TMT bars. Its headquarter remains located in Hisar, Haryana, India. On NSE, the stock symbol of the company is “JSLHISAR.”
As per my knowledge, the market capitalization of JSL Hisar Limited as on Sept 2021 was around Rs 2,782 Crore. Please note, however, that stock prices and market capitalizations can fluctuate over time and may change after that.
The National Stock Exchange (NSE) is the principal stock exchange in India in terms of market capitalization, trading volume, and technology. It was established in 1992 and remained headquartered in Mumbai, India. NSE is a fully automated electronic trading platform offering equity, derivatives, debt securities and currency derivatives trading.
NSE works on the principle of an order-based market where buyers and sellers place their orders electronically, which are matched by a computer system based on price and time preference. The Exchange works from Monday to Friday, and the trading hours are 9:15 AM to 3:30 PM Indian Standard Time (IST).
NSE remains controlled by the Securities and Exchange Board of India (SEBI) and has strict compliance requirements for companies listed on the Exchange. The Exchange has implemented various measures to ensure transparency, efficiency, and security in trading, including a robust risk management system, regular tracking and monitoring of trading activities, and dissemination real-time market data.
Jindal Stainless (Hisar) Knows How To Allocate Capital
What are the early trends to identify stocks that can multiply in value over the long term? First, we seek to identify a growing return on investment (ROCE) and a steadily growing base of capital employed. Ultimately, it shows that this business is reinvesting at increasing rates of return. So, when we observed the ROCE trend for Jindal Stainless (Hussar).
Return on Capital Employed (ROCE)
For those who aren’t sure what ROCE is, it measures the pre-tax profit a company can generate from the capital employed in its business. To calculate this metric for Jindal Stainless (Hisar), this is the formula:
Return on capital employed = Pays before interest and tax (EBIT) ÷ (total assets – current liabilities)
0.23 = ₹15b ÷ (₹103b – ₹36b) (Based on trailing twelve months to September 2022).
Thus, Jindal Stainless (Hisar) has a ROCE of 23%. That’s a fantastic return, and not only that, it beats the 15% average earned by companies in a similar industry.
What The Trend Of ROCE Can Tell Us
Jindal Stainless (Hisar) deserves to remain commended for his comeback. The company has employed 84% more capital over the past five years, and returns on that capital have remained steady at 23%. With such high returns, it’s great that a business can continually reinvest its money at such attractive rates of return. You will see this in well-run companies or profitable business models.
Another thing to note, although ROCE has remained relatively flat over the past five years, the reduction in current liabilities to 35% of total assets is good to see from a business owner’s perspective. It can eliminate some of the risks inherent in doing business because the business has fewer outstanding obligations to suppliers and short-term creditors than before.
Reasons why the market is watching Jindal Stainless (Hisar)
The Jindal Stainless (Hisar) (NSI:JSLHISAR) share price is trading at 139.4. But to try to predict what the cost will look like over the next 12 months and beyond, it’s worth knowing its strengths and potential weaknesses. The promising news for shareholders is that it shows signs of good storage on crucial financial and technical measures.
Jindal Stainless (Hisar) stock is a small-cap stock with at least some risk, with two influential drivers of market returns: high quality and strong momentum.
Quality and speed remain highly valued among investors looking for reliable investment ideas. That’s because good quality stocks tend to be resilient, cash-generating businesses that can increase investment returns over time. And those with reasonable price and earnings momentum have a habit of exceeding expectations.
Jindal Stainless (Hisar) is to be re-merged with Jindal stainless
The move comes nearly five years after highly indebted Jindal Stainless carved out JSL (Hisar). The exchange ratio for this merger has stood fixed at 1.95 shares of JSL for every share of JSL (Hisar).
Jindal Stainless (Hisar), a stainless steel manufacturer, has announced the re-merger of the company with Jindal Stainless. The accepted exchange ratio was 195 shares of Jindal Stainless for every 100 shares of Jindal Stainless (Hisar). After this transaction, Jindal Stainless will be the only listed company with a combined stainless steel production capacity of 1.9 million tonnes.
In 2015, Jindal Stainless began its asset monetization program. Phase 1 was a demerger that split the company into four parts – Jindal Stainless, Jindal Stainless (Hisar), Jindal United Steel, and Jindal Coke. The latter 2 remained private companies while JSL (Hisar) was listed.
Due to this disintegration, Jindal Stainless’s Rs. A loan of 8500 crores remains distributed among four firms. It allowed the four entities to operate independently of debtor and CDR candidate Jindal Stainless. There was also the idea of branching off the operationally strong Jindal Stainless (Hisar) from Jindal Stainless, whose Odisha unit was spending a lot of financial and otherwise resources to strengthen itself. After this, Jindal Stainless managed to get out of CDR. Its debt fell from Rs. 5330 crores in FY17. 3043 crores now.
In short, we would say that Jindal Stainless (Hissar) has earnings multiple of Excavator as it has been able to pool its capital with excellent rates of return. And since the stock has increased enormously over the past five years, it seems that the market can expect this trend to continue. So while investors seem to recognize these promising trends, we still believe the stock deserves further exploration.