JSW Steel Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹2,21,802.67 crore, a PE ratio of 30.72, a debt-to-equity ratio of 1.13, and a return on equity (ROE) of 11.8%. These figures reflect the company’s financial health and strong market position.
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JSW Steel Ltd Overview
JSW Steel Ltd is a prominent Indian steel manufacturer offering a diverse range of steel products to various industries. The company is known for its advanced production techniques and extensive distribution network across India and abroad.
The company has a market capitalization of ₹2,21,802.67 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading close to its 52-week high of ₹959, significantly above its 52-week low of ₹723, indicating strong investor confidence. The all-time high of the stock is ₹959, while the all-time low is ₹16.0.
JSW Steel Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with total income increasing from ₹1,46,371 crore to ₹1,75,006 crore and profit before tax rising from ₹40,538 crore to ₹29,240 crore. The company maintained a stable OPM and improved EPS over the years.
- Revenue Trend: Total income increased from ₹1,46,371 crore in FY 22 to ₹1,65,960 crore in FY 23, and further to ₹1,75,006 crore in FY 24, indicating robust revenue growth.
- Equity and Liabilities: JSW Steel’s equity and liabilities structure showcases financial stability and strategic management. The company effectively balances equity financing and debt to ensure sustainability and capital flexibility for growth initiatives.
- Profitability: Operating Profit Margin (OPM) decreased from 27% in FY 22 to 11% in FY 23, and further to 16% in FY 24, reflecting changes in operational efficiency over the period.
- Earnings per Share (EPS): EPS decreased from ₹85.96 in FY 22 to ₹17.25 in FY 23, and then increased to ₹36.34 in FY 24, indicating fluctuations in profit growth per share.
- Return on Net Worth (RoNW): RoNW decreased from 26.30% in FY 22 to 7.75% in FY 23, and then improved to 10.68% in FY 24, indicating variable returns on shareholders’ equity and profitability.
- Financial Position: The company’s financial position showed fluctuations with EBITDA decreasing from ₹40,538 crore in FY 22 to ₹19,577 crore in FY 23, and then increasing to ₹29,240 crore in FY 24, showcasing varied financial health and management.
JSW Steel Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,75,006 | 1,65,960 | 1,46,371 |
| Expenses | 1,46,770 | 1,47,413 | 1,07,364 |
| Operating Profit | 28,236 | 18,547 | 39,007 |
| OPM % | 16 | 11 | 27 |
| Other Income | 1,593 | 1,621 | 790 |
| EBITDA | 29,240 | 19,577 | 40,538 |
| Interest | 8,105 | 6,902 | 4,968 |
| Depreciation | 8,172 | 7,474 | 6,001 |
| Profit Before Tax | 13,552 | 5,792 | 28,828 |
| Tax % | 32.52 | 26.17 | 30.55 |
| Net Profit | 8,973 | 4,139 | 20,938 |
All values in ₹ Crores.
JSW Steel Company Metrics
JSW Steel’s market cap is ₹2,21,802.67 crore, with a book value of ₹318 per share and face value of ₹1. It has a significant debt of ₹87,984 crore, EBITDA of ₹29,240 crore, dividend yield of 0.80%, asset turnover of 0.80, and EPS of ₹29.9.
Market Capitalization: Represents the total market value of JSW Steel’s outstanding shares, amounting to ₹2,21,802.67 crore.
Book Value: JSW Steel has a book value of ₹318 per share, representing the net asset value of the company divided by the number of outstanding shares.
Face Value: The face value of JSW Steel’s shares is ₹1.00, which is the nominal value of each share as stated on the share certificate.
Asset Turnover: JSW Steel has an asset turnover ratio of 0.80, indicating the company’s efficiency in using its assets to generate revenue.
Total Debt: JSW Steel has a significant debt of ₹87,984 crore, reflecting its financial leverage and obligations. Managing this debt effectively is crucial for the company’s long-term financial stability and growth.
EBITDA: JSW Steel’s EBITDA was ₹40,538 crore in FY 22, ₹19,577 crore in FY 23, and ₹29,240 crore in FY 24, indicating fluctuating operational performance and profitability over these years.
Dividend Yield: JSW Steel has a dividend yield of 0.80%, reflecting the annual dividend income relative to its current share price.
Earnings per Share (EPS): JSW Steel has an EPS of ₹29.9, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the company’s profitability for its shareholders.
JSW Steel Stock Performance
JSW Steel delivered impressive returns on investment with 13.6% over 1 year, 6.62% over 3 years, and 31.9% over 5 years, highlighting strong long-term performance and consistent profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 13.6 |
| 3 Years | 6.62 |
| 5 Years | 31.9 |
Example: If an investor had invested ₹1,000 in JSW Steel’s stock:
1 year ago, their investment would be worth ₹1,136.
3 years ago, their investment would have grown to ₹1,066.
5 years ago, their investment would have increased to approximately ₹1,319.
This highlights strong long-term performance and consistent profitability for investors.
JSW Steel Peer Comparison
JSW Steel has a CMP of ₹907.85, a market cap of ₹2,21,792.94 crore, and a P/E of 30.72
. Peers like Tata Steel, Tube Investments, Jindal Stainless, SAIL, APL Apollo Tubes, and Shyam Metalics show varied performance metrics with different market caps, P/E ratios, and returns.
| Name | CMP Rs. | Mar Cap Rs. Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| JSW Steel | 907.85 | 221792.94 | 30.72 | 11.79 | 29.93 | 13.56 | 13.3 | 0.8 |
| Tata Steel | 148.88 | 185866.97 | 115.21 | 6.55 | -3.39 | 26.01 | 7.02 | 2.42 |
| Tube Investments | 3973.95 | 76902.74 | 89.91 | 26.48 | 62.57 | 38.54 | 26.28 | 0.09 |
| Jindal Stain. | 694.25 | 57070.62 | 22.6 | 19.93 | 31.76 | 71.84 | 22.27 | 0.14 |
| S A I L | 128.14 | 52928.55 | 13.67 | 6.62 | 7.11 | 47.12 | 8.24 | 0.78 |
| APL Apollo Tubes | 1411.25 | 39150.62 | 53.49 | 22.16 | 26.38 | -10.42 | 25.29 | 0.35 |
| Shyam Metalics | 748 | 20902.99 | 18.96 | 12.24 | 41.69 | 61.09 | 10.94 | 0.6 |
JSW Steel Shareholding Pattern
JSW Steel’s shareholding pattern in FY 2024 shows promoters holding 44.81%, down from 45.4% in FY 2023. FIIs held 26.06%, DIIs 9.81%, and retail & others 19.32%, reflecting a diverse ownership structure and slight changes in holdings.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 44.81 | 45.4 | 45.01 |
| FII | 26.06 | 26.01 | 11.58 |
| DII | 9.81 | 9.47 | 7.93 |
| Retail & others | 19.32 | 19.11 | 35.46 |
All values in %
JSW Steel History
JSW Steel, founded in 1982, is one of India’s leading integrated steel manufacturers. Over the years, the company has expanded its production capacity and established a significant presence in both domestic and international markets. Known for its innovative practices, JSW Steel continues to drive growth in the steel sector.
The company’s journey began with the establishment of its first steel plant in Vasind, Maharashtra. JSW Steel quickly grew by acquiring and modernizing existing facilities, including the acquisition of the Ispat Industries in 2010. This strategic move bolstered its production capabilities and market reach.
In 2005, JSW Steel set up its flagship plant in Vijayanagar, Karnataka, which is now one of the largest single-location steel-producing facilities in India. This plant utilizes state-of-the-art technology and sustainable practices, positioning JSW Steel as a leader in efficient steel production.
JSW Steel has also focused on expanding its global footprint. The acquisition of Italian steelmaker Aferpi and a steel plant in Texas, USA, has strengthened its international presence. These acquisitions align with the company’s vision to become a prominent player in the global steel industry.
In recent years, JSW Steel has made significant investments in research and development to innovate and improve product quality. The company’s commitment to sustainability is evident through its initiatives in reducing carbon emissions and promoting the use of green steel, reinforcing its role as a responsible industry leader.
How To Invest In JSW Steel Ltd Share?
Investing in JSW Steel Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for JSW Steel Ltd shares and place your buy order.
JSW Steel Limited Fundamental Analysis – FAQs
JSW Steel’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹2,21,802.67 crore, a PE ratio of 30.72, a debt-to-equity ratio of 1.13, and a return on equity (ROE) of 11.8%.
JSW Steel Ltd’s market capitalization is ₹2,21,802.67 crore, representing the total market value of its outstanding shares.
JSW Steel Limited is a leading Indian steel manufacturing company, producing a wide range of steel products used in various industries such as construction, automotive, and infrastructure.
JSW Steel is owned by JSW Group, led by Sajjan Jindal, who serves as the Chairman and Managing Director of the company.
The main shareholders of JSW Steel include the promoter group (44.81%), FIIs (26.06%), DIIs (9.81%), and retail & others (19.32%).
JSW Steel operates in the steel manufacturing industry, producing a wide range of steel products for various sectors including construction, automotive, and infrastructure.
To invest in JSW Steel Ltd shares, you can buy the stock through a brokerage account on the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE) by placing a buy order.
Determining if JSW Steel is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. Based on the PE ratio of 30.72, JSW Steel might be considered overvalued compared to its earnings, indicating that the stock price may be high relative to the company’s profitability.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
