Sales have grown from around Rs. 3k million to around Rs.76k million from 2000 to 2009. Profits have grown from around Rs.600 million to around Rs.15000 million from 2000 to 2009.
Jindal Steel and Power has been earning a return of at least 18% on its net worth per year from 2000 to 2009. It has earnings per share of around Rs. 92 in the last 12 months.
Jindal Steel and Power has a cash and bank balance of around Rs. 3000 million. It has net current assets of around Rs. 10000 million. It has investments of around Rs. 12000 million. It has a net worth of around Rs. 54000 million. It has a market capitalization of around Rs. 90000 million.
At a market price of around Rs. 610 and earnings of around Rs. 16 the initial rate of return is less than 3 per cent which we could easily get in a savings account! The value of the company accroding to me should be around Rs.300.
Jindal Steel and Power makes Steel - Sponge Iron and has a Debt Equity Ratio of 0.92. Competitors are Monnet Ispat, Jai Balaji Ind, Adhunik Metalik, Orissa Sponge and Sarda Energy.
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