BSE:500228

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

JSW Steel Limited manufactures and sells steel products in India.


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has JSW Steel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500228's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.2%

500228

8.4%

IN Metals and Mining

7.4%

IN Market


1 Year Return

-28.3%

500228

-32.3%

IN Metals and Mining

-17.6%

IN Market

Return vs Industry: 500228 exceeded the Indian Metals and Mining industry which returned -33.2% over the past year.

Return vs Market: 500228 underperformed the Indian Market which returned -19.9% over the past year.


Shareholder returns

500228IndustryMarket
7 Day4.2%8.4%7.4%
30 Day17.1%11.2%6.7%
90 Day-19.6%-13.3%-11.1%
1 Year-27.2%-28.3%-29.7%-32.3%-16.0%-17.6%
3 Year0.2%-3.5%-26.9%-34.4%-5.4%-10.4%
5 Year132.0%119.6%10.7%-9.9%19.3%8.0%

Price Volatility Vs. Market

How volatile is JSW Steel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is JSW Steel undervalued compared to its fair value and its price relative to the market?

11.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500228 (₹192.25) is trading above our estimate of fair value (₹158.33)

Significantly Below Fair Value: 500228 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500228 is poor value based on its PE Ratio (11.5x) compared to the Metals and Mining industry average (7.4x).

PE vs Market: 500228 is poor value based on its PE Ratio (11.5x) compared to the Indian market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 500228 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 500228 is overvalued based on its PB Ratio (1.3x) compared to the IN Metals and Mining industry average (0.6x).


Next Steps

Future Growth

How is JSW Steel forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

25.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500228's forecast earnings growth (25.8% per year) is above the savings rate (7.2%).

Earnings vs Market: 500228's earnings (25.8% per year) are forecast to grow faster than the Indian market (16.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500228's revenue (11.5% per year) is forecast to grow faster than the Indian market (7.2% per year).

High Growth Revenue: 500228's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500228's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has JSW Steel performed over the past 5 years?

39.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500228 has a large one-off loss of ₹8.1B impacting its March 31 2020 financial results.

Growing Profit Margin: 500228's current net profit margins (5.5%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: 500228's earnings have grown significantly by 39.9% per year over the past 5 years.

Accelerating Growth: 500228's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500228 had negative earnings growth (-47.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (-6.8%).


Return on Equity

High ROE: 500228's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is JSW Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 500228's short term assets (₹365.7B) do not cover its short term liabilities (₹436.9B).

Long Term Liabilities: 500228's short term assets (₹365.7B) do not cover its long term liabilities (₹521.1B).


Debt to Equity History and Analysis

Debt Level: 500228's debt to equity ratio (147.1%) is considered high.

Reducing Debt: 500228's debt to equity ratio has reduced from 161.5% to 147.1% over the past 5 years.

Debt Coverage: 500228's debt is well covered by operating cash flow (24.1%).

Interest Coverage: 500228's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

What is JSW Steel's current dividend yield, its reliability and sustainability?

1.04%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 500228's dividend (1.04%) is higher than the bottom 25% of dividend payers in the Indian market (0.83%).

High Dividend: 500228's dividend (1.04%) is low compared to the top 25% of dividend payers in the Indian market (3.47%).


Stability and Growth of Payments

Stable Dividend: 500228's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500228's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.9%), 500228's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500228's dividends in 3 years are forecast to be thoroughly covered by earnings (8.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.2yrs

Average management tenure


CEO

Sajjan Jindal (60yo)

15.33yrs

Tenure

₹702,700,000

Compensation

Mr. Sajjan Kumar Jindal, B.Engg. (Mech) serves as the Chairman, Managing Director and Executive Director of JSW Energy Limited. Mr. Jindal has been the Managing Director and Chairman of JSW Steel Ltd since ...


CEO Compensation Analysis

Compensation vs Market: Sajjan's total compensation ($USD9.30M) is above average for companies of similar size in the Indian market ($USD1.21M).

Compensation vs Earnings: Sajjan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sajjan Jindal
Non Independent Executive Chairman & MD15.33yrs₹702.70m0.0025% 11.4m
M. V. S. Rao
Joint MD21.17yrs₹58.10m0.0093% 43.0m
Jayant Acharya
Director of Commercial & Marketing and Non-Independent Executive Director11.08yrs₹36.20m0.0047% 21.6m
Vinod Nowal
Deputy MD & Non-Independent Executive Director13.17yrs₹44.90m0.0050% 23.2m
Rajeev Pai
Chief Financial Officerno datano datano data
P. Rajashekar
President of Operationsno datano datano data
P. Sasindran
Chief of Technologyno datano datano data
Pritesh Vinay
Vice President of Finance & Investors Relationsno datano datano data
Lancy Varghese
Compliance Officer & Company Secretaryno datano datano data
Bakshi Rajiv
Senior VP of Legal & Group Counsel Generalno datano datano data

11.2yrs

Average Tenure

59yo

Average Age

Experienced Management: 500228's management team is seasoned and experienced (11.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sajjan Jindal
Non Independent Executive Chairman & MD15.33yrs₹702.70m0.0025% 11.4m
M. V. S. Rao
Joint MD21.17yrs₹58.10m0.0093% 43.0m
Jayant Acharya
Director of Commercial & Marketing and Non-Independent Executive Director11.08yrs₹36.20m0.0047% 21.6m
Vinod Nowal
Deputy MD & Non-Independent Executive Director13.17yrs₹44.90m0.0050% 23.2m
Malay Mukherjee
Lead Independent Director1.92yrs₹3.89mno data
Savitri Jindal
Chairperson Emeritus8.67yrs₹1.53m0.0031% 14.5m
Punita Kumar-Sinha
Independent Non-Executive Director7.67yrs₹3.64mno data
M. S. Nirmal Jain
Chairman of JSW Infrastructure Ltdno data₹9.81mno data
Seturaman Mahalingam
Independent Non-Executive Director3.92yrs₹3.92mno data
Sangita Jindal
Chairperson of JSW Foundationno datano data0.000040% 185.1k

8.7yrs

Average Tenure

64yo

Average Age

Experienced Board: 500228's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 500228 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

JSW Steel Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: JSW Steel Limited
  • Ticker: 500228
  • Exchange: BSE
  • Founded: 1982
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹462.810b
  • Shares outstanding: 2.40b
  • Website: https://www.jsw.in

Number of Employees


Location

  • JSW Steel Limited
  • JSW Centre
  • Bandra Kurla Complex
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JSWSTEELNSEI (National Stock Exchange of India)INR1ININRNo data
500228BSE (Mumbai Stock Exchange)INR1ININRNo data
500228BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1999
JSWSTEELNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1999
717502BSE (Mumbai Stock Exchange)0.01% PRFININRAug 2017

Biography

JSW Steel Limited manufactures and sells steel products in India. The company offers hot and cold rolled products, color coated products, galvanized products, galvalume products, TMT bars, wire rods, and special alloy steel. It provides its products under the JSW Everglow, Colouron+, JSW Pragati, Colouron, Vishwas, Colouron+, Galvos, Galveco, Neosteel, JSW Trusteel, Avante Steel Doors, and Light Steel Building Solution brands. The company also exports its products. The company was formerly known as Jindal Vijayanagar Steel Limited and changed its name to JSW Steel Limited in June 2005. JSW Steel Limited was founded in 1982 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 12:54
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.