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Market Cap

₹1.7t

Last Updated

2021/05/06 12:16 UTC

Data Sources

Company Financials +

Executive Summary

JSW Steel Limited engages in the manufacture and sale of iron and steel products in India and internationally. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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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: JSWSTEEL is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: JSWSTEEL's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

JSWSTEEL

3.8%

IN Metals and Mining

0.4%

IN Market


1 Year Return

323.8%

JSWSTEEL

207.3%

IN Metals and Mining

67.3%

IN Market

Return vs Industry: JSWSTEEL exceeded the Indian Metals and Mining industry which returned 204% over the past year.

Return vs Market: JSWSTEEL exceeded the Indian Market which returned 65.4% over the past year.


Shareholder returns

JSWSTEELIndustryMarket
7 Day0.5%3.8%0.4%
30 Day35.8%19.0%1.6%
90 Day81.5%47.0%4.3%
1 Year328.3%323.8%227.6%207.3%69.9%67.3%
3 Year136.8%128.4%59.5%42.2%27.9%21.5%
5 Year499.8%469.0%250.7%191.4%87.7%73.4%

Long-Term 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?

43.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JSWSTEEL (₹729.8) is trading above our estimate of fair value (₹246.61)

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


Price To Earnings Ratio

PE vs Industry: JSWSTEEL is poor value based on its PE Ratio (43.7x) compared to the IN Metals and Mining industry average (17.3x).

PE vs Market: JSWSTEEL is poor value based on its PE Ratio (43.7x) compared to the Indian market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: JSWSTEEL is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: JSWSTEEL is overvalued based on its PB Ratio (4.6x) compared to the IN Metals and Mining industry average (1.2x).


Future Growth

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

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JSWSTEEL's forecast earnings growth (20.9% per year) is above the savings rate (6.8%).

Earnings vs Market: JSWSTEEL's earnings (20.9% per year) are forecast to grow slower than the Indian market (23.2% per year).

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

Revenue vs Market: JSWSTEEL's revenue (14.7% per year) is forecast to grow faster than the Indian market (13.4% per year).

High Growth Revenue: JSWSTEEL's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JSWSTEEL's Return on Equity is forecast to be low in 3 years time (19.7%).


Past Performance

How has JSW Steel performed over the past 5 years?

21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JSWSTEEL has high quality earnings.

Growing Profit Margin: JSWSTEEL's current net profit margins (5.6%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: JSWSTEEL has become profitable over the past 5 years, growing earnings by 21.1% per year.

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

Earnings vs Industry: JSWSTEEL had negative earnings growth (-25.7%) over the past year, making it difficult to compare to the Metals and Mining industry average (-0.6%).


Return on Equity

High ROE: JSWSTEEL's Return on Equity (10.5%) is considered low.


Financial Health

How is JSW Steel's financial position?


Financial Position Analysis

Short Term Liabilities: JSWSTEEL's short term assets (₹300.3B) do not cover its short term liabilities (₹406.1B).

Long Term Liabilities: JSWSTEEL's short term assets (₹300.3B) do not cover its long term liabilities (₹505.2B).


Debt to Equity History and Analysis

Debt Level: JSWSTEEL's debt to equity ratio (129.9%) is considered high.

Reducing Debt: JSWSTEEL's debt to equity ratio has reduced from 187% to 129.9% over the past 5 years.

Debt Coverage: JSWSTEEL's debt is well covered by operating cash flow (26.9%).

Interest Coverage: JSWSTEEL's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Dividend

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

0.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JSWSTEEL's dividend (0.28%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: JSWSTEEL's dividend (0.28%) is low compared to the top 25% of dividend payers in the Indian market (1.77%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.2%), JSWSTEEL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JSWSTEEL'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?

12.1yrs

Average management tenure


CEO

Sajjan Jindal (61 yo)

16.25yrs

Tenure

₹400,300,000

Compensation

Mr. Sajjan Kumar Jindal, B.Engg. (Mech), serves as the Chairman, Managing Director and Executive Director of JSW Energy Limited & joined on January 01, 2009. Mr. Jindal has been the Managing Director and C...


CEO Compensation Analysis

Compensation vs Market: Sajjan's total compensation ($USD5.42M) is above average for companies of similar size in the Indian market ($USD974.94K).

Compensation vs Earnings: Sajjan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: JSWSTEEL's management team is seasoned and experienced (12.1 years average tenure).


Board Members

Experienced Board: JSWSTEEL's board of directors are considered experienced (9.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: JSWSTEEL 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: JSWSTEEL
  • Exchange: NSEI
  • Founded: 1982
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹1.724t
  • 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


Biography

JSW Steel Limited engages in the manufacture and sale of iron and steel products in India and internationally. The company provides hot rolled and cold-rolled coils, and electrical steel products, as well ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 12:16
End of Day Share Price2021/05/06 00:00
Earnings2020/12/31
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.