BSE:500228

Stock Analysis Report

Executive Summary

JSW Steel Limited manufactures and sells steel products in India.

Snowflake

Fundamentals

Good value 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


Market Performance


7 Day Return

1.1%

500228

0.9%

IN Metals and Mining

2.4%

IN Market


1 Year Return

-36.8%

500228

-27.4%

IN Metals and Mining

8.0%

IN Market

Return vs Industry: 500228 underperformed the Indian Metals and Mining industry which returned -27.4% over the past year.

Return vs Market: 500228 underperformed the Indian Market which returned 8% over the past year.


Shareholder returns

500228IndustryMarket
7 Day1.1%0.9%2.4%
30 Day-8.6%-2.8%2.5%
90 Day-10.5%-9.3%3.6%
1 Year-35.8%-36.8%-24.3%-27.4%10.3%8.0%
3 Year38.4%33.4%0.2%-11.1%22.3%16.0%
5 Year88.4%78.3%3.0%-14.1%42.8%29.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500228 (₹222.65) is trading below our estimate of fair value (₹1041.39)

Significantly Below Fair Value: 500228 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500228 is poor value based on its PE Ratio (8.5x) compared to the Metals and Mining industry average (8.1x).

PE vs Market: 500228 is good value based on its PE Ratio (8.5x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 500228 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 500228 is overvalued based on its PB Ratio (1.5x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is JSW Steel forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500228's forecast earnings growth (16.8% per year) is above the savings rate (7.6%).

Earnings vs Market: 500228's earnings (16.8% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: 500228's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500228's revenue (9.3% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 500228's revenue (9.3% 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 (15.4%).


Next Steps

Past Performance

How has JSW Steel performed over the past 5 years?

45.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500228's earnings have grown significantly by 45.9% 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 (-20.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (15.1%).


Return on Equity

High ROE: 500228's Return on Equity (18%) is considered low.


Return on Assets

ROA vs Industry: 500228 has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: 500228 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is JSW Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 500228's short term assets (₹335.6B) do not cover its short term liabilities (₹420.1B)

Long Term Liabilities: 500228's short term assets (335.6B) do not cover its long term liabilities (385.6B)


Debt to Equity History and Analysis

Debt Level: 500228's debt to equity ratio (134.6%) is considered high

Reducing Debt: 500228's debt to equity ratio has reduced from 156.9% to 134.6% over the past 5 years.

Debt Coverage: 500228's debt is well covered by operating cash flow (31.7%).

Interest Coverage: 500228's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: 500228 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500228's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%0.6%markettop25%2.4%industryaverage4.4%forecastin3Years1.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500228's dividend (1.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500228's dividend (1.84%) is low compared to the top 25% of dividend payers in the Indian market (2.41%).

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 (15.6%), 500228's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500228's dividends in 3 years are forecast to be well covered by earnings (15.7% payout ratio).


Next Steps

Management

What is the CEO of JSW Steel's salary, the management and board of directors tenure and is there insider trading?

10.5yrs

Average management tenure


CEO

Sajjan Jindal (60yo)

14.7yrs

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 ($USD9.92M) is about average for companies of similar size in the Indian market ($USD1.57M).

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


Management Age and Tenure

10.5yrs

Average Tenure

59yo

Average Age

Experienced Management: 500228's management team is seasoned and experienced (10.5 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

64yo

Average Age

Experienced Board: 500228's board of directors are considered experienced (8 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹358,610,10703 Oct 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares1,530,839
Max Price₹234.26
Sell₹2,708,60103 Oct 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares11,820
Max Price₹229.15
Sell₹4,643,85630 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares19,780
Max Price₹234.78
Buy₹138,746,73130 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares600,000
Max Price₹231.24
Sell₹615,962,31225 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares2,620,294
Max Price₹240.43
Buy₹2,221,54921 Sep 19
Urmila Bhuwalka
EntityIndividual
Shares10,000
Max Price₹222.15
Buy₹219,611,12221 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares1,000,000
Max Price₹219.61
Sell₹21,797,84421 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares100,000
Max Price₹217.98
Sell₹74,944,64218 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares334,097
Max Price₹224.52
Buy₹1,104,49918 Sep 19
Urmila Bhuwalka
EntityIndividual
Shares5,000
Max Price₹220.90
Sell₹24,237,71311 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares109,450
Max Price₹221.84
Sell₹1,090,53306 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares5,000
Max Price₹218.11
Buy₹216,553,36606 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares1,000,000
Max Price₹220.31
Sell₹6,211,47504 Sep 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares29,125
Max Price₹213.27
Buy₹105,494,42530 Aug 19
Vividh Consultancy and Advisory Services Private Limited
EntityCompany
Shares499,000
Max Price₹216.67
Buy₹43,039,60130 Aug 19
JSW Holdings Limited
EntityCompany
Shares200,000
Max Price₹215.20
Buy₹48,697,59028 Aug 19
Vividh Consultancy and Advisory Services Private Limited
EntityCompany
Shares225,000
Max Price₹216.43
Buy₹850,03328 Aug 19
Urmila Bhuwalka
EntityIndividual
Shares4,000
Max Price₹212.51
Sell₹3,150,36326 Aug 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares14,185
Max Price₹222.09
Buy₹145,027,49426 Aug 19
Vividh Consultancy and Advisory Services Private Limited
EntityCompany
Shares651,000
Max Price₹223.42
Sell₹2,938,81520 Aug 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares13,005
Max Price₹225.98
Buy₹43,109,25013 Aug 19
JSW Holdings Limited
EntityCompany
Shares200,000
Max Price₹215.55
Buy₹155,377,17109 Aug 19
JSW Holdings Limited
EntityCompany
Shares715,000
Max Price₹219.42
Buy₹144,237,67807 Aug 19
JSW Holdings Limited
EntityCompany
Shares650,000
Max Price₹229.03
Sell₹3,571,95731 Jul 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares14,820
Max Price₹241.25
Sell₹823,10203 Jul 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares3,000
Max Price₹274.37
Sell₹86,792,49402 Jul 19
Beaufield Holdings Limited
EntityCompany
Shares315,500
Max Price₹275.10
Sell₹2,770,41328 Jun 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares9,999
Max Price₹277.07
Sell₹4,600,62724 Jun 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares17,415
Max Price₹264.18
Sell₹58,320,34420 Jun 19
Beaufield Holdings Limited
EntityCompany
Shares212,439
Max Price₹275.51
Sell₹339,527,23215 Jun 19
Beaufield Holdings Limited
EntityCompany
Shares1,237,339
Max Price₹274.40
Sell₹268,522,00411 Jun 19
Beaufield Holdings Limited
EntityCompany
Shares978,003
Max Price₹274.56
Sell₹290,889,43607 Jun 19
Beaufield Holdings Limited
EntityCompany
Shares1,060,773
Max Price₹274.22
Sell₹392,014,89706 Jun 19
Beaufield Holdings Limited
EntityCompany
Shares1,436,413
Max Price₹272.91
Sell₹1,166,314,24804 Jun 19
Beaufield Holdings Limited
EntityCompany
Shares4,167,788
Max Price₹283.27
Sell₹17,127,43431 May 19
JSW Steel Employees Welfare Trust
EntityCompany
Shares59,495
Max Price₹292.32
Buy₹10,042,58101 Apr 19
JSW Holdings Limited
EntityCompany
Shares36,000
Max Price₹278.96
Buy₹357,919,36527 Mar 19
Vividh Consultancy and Advisory Services Private Limited
EntityCompany
Shares1,269,000
Max Price₹285.83
Buy₹57,621,50120 Mar 19
JSW Holdings Limited
EntityCompany
Shares200,000
Max Price₹288.11
Buy₹87,244,87913 Mar 19
Sahyog Tradecorp Private Limited
EntityCompany
Shares300,500
Max Price₹291.83
Buy₹30,520,32217 Nov 18
JSW Steel Employees Welfare Trust
EntityCompany
Shares88,444
Max Price₹345.08
Buy₹151,803,24501 Nov 18
JSW Steel Employees Welfare Trust
EntityCompany
Shares450,000
Max Price₹337.34

Ownership Breakdown


Management Team

  • Sajjan Jindal (60yo)

    Non Independent Executive Chairman & MD

    • Tenure: 14.7yrs
    • Compensation: ₹702.70m
  • Lancy Varghese (52yo)

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
  • M. V. S. Rao (61yo)

    Joint MD

    • Tenure: 20.5yrs
    • Compensation: ₹58.10m
  • Vinod Nowal (64yo)

    Deputy MD & Non-Independent Executive Director

    • Tenure: 12.5yrs
    • Compensation: ₹44.90m
  • Pritesh Vinay (43yo)

    Vice President of Finance & Investors Relations

    • Tenure: 0yrs
  • P. Sasindran (69yo)

    Chief of Technology

    • Tenure: 0yrs
  • Jayant Acharya (56yo)

    Director of Commercial & Marketing and Non-Independent Executive Director

    • Tenure: 10.4yrs
    • Compensation: ₹36.20m
  • Rajeev Pai (57yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • P. Rajashekar (61yo)

    President of Operations

    • Tenure: 0yrs
  • Bakshi Rajiv (58yo)

    Senior VP of Legal & Group Counsel General

    • Tenure: 0yrs

Board Members

  • Malay Mukherjee (71yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹3.89m
  • Sajjan Jindal (60yo)

    Non Independent Executive Chairman & MD

    • Tenure: 14.7yrs
    • Compensation: ₹702.70m
  • M. V. S. Rao (61yo)

    Joint MD

    • Tenure: 20.5yrs
    • Compensation: ₹58.10m
  • Savitri Jindal (69yo)

    Chairperson Emeritus

    • Tenure: 8yrs
    • Compensation: ₹1.53m
  • Punita Kumar-Sinha (57yo)

    Independent Non-Executive Director

    • Tenure: 7yrs
    • Compensation: ₹3.64m
  • Vinod Nowal (64yo)

    Deputy MD & Non-Independent Executive Director

    • Tenure: 12.5yrs
    • Compensation: ₹44.90m
  • Jayant Acharya (56yo)

    Director of Commercial & Marketing and Non-Independent Executive Director

    • Tenure: 10.4yrs
    • Compensation: ₹36.20m
  • M. S. Nirmal Jain (73yo)

    Chairman of JSW Infrastructure Ltd

    • Tenure: 0yrs
    • Compensation: ₹9.81m
  • Seturaman Mahalingam (71yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹3.92m
  • Sangita Jindal

    Chairperson of JSW Foundation

    • Tenure: 0yrs

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: ₹527.416b
  • 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
500228BSE (Mumbai Stock Exchange)INR1ININRNo data
JSWSTEELNSEI (National Stock Exchange of India)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 s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:37
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.