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INVESTMENT INSIGHTS

Check Before You Invest : JSW Steel Ltd

BSE: 500228 NSE: JSWSTEEL ISIN: INE019A01038
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does JSW Steel Ltd belong to?
JSW Steel Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is JSW Steel Ltd a good quality company?
JSW Steel Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is JSW Steel Ltd undervalued or overvalued?
JSW Steel Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is JSW Steel Ltd a good buy now?
JSW Steel Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of JSW Steel Ltd?
JSW Steel Ltd revenue growth is -5.5% for FY-2025 , which is below its 5 year CAGR of 14.7% , indicating slower growth.
Q.2 Gross Profit margin of JSW Steel Ltd?
JSW Steel Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.8% for FY-2025 , which is below its 5 year median of 13% , indicating decreasing margins.
Q.3 Operating Profit Margin of JSW Steel Ltd?
JSW Steel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.72% for FY-2025 , which is below its 5 year median of 16.54% indicating decreasing margins.
Q.4 Net Profit Margin of JSW Steel Ltd?
JSW Steel Ltd Net Profit Margin is 4.57% for FY-2025 , is below with its 5 year median of 5.95%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 10.8 13
Operating Profit Margin 14.72 16.54
Net Profit Margin 4.57 5.95
Q.5 Return on Asset of JSW Steel Ltd?
JSW Steel Ltd Return on Asset is 3.09%, which is below its 5 year historical median of 4.49%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of JSW Steel Ltd?
JSW Steel Ltd Return on equity is 7.57% for FY-2025 , which is below its historical median of 11.66%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of JSW Steel Ltd?
JSW Steel Ltd Return on capital employed is 9.33% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 11.25%, indicating value preservation.
Q.8 Cash conversion cycle of JSW Steel Ltd?
JSW Steel Ltd Cash conversion cycle is 44 days, above its historical median of 40 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.68 0.75
ROE 7.57 11.66
ROCE 9.33 14.4
Cash Conversion Cycle 44 days 40 days
Q.9 Debt to Equity ratio of JSW Steel Ltd?
JSW Steel Ltd Debt-to-Equity ratio is 0.82 , which is above with the industry average of 0.15 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of JSW Steel Ltd?
JSW Steel Ltd Debt to cash flow from operations is 3.88 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of JSW Steel Ltd?
Promoters hold 45.32% of the JSW Steel Ltd, with 11.70% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of JSW Steel Ltd vs industry peers?
JSW Steel Ltd revenue CAGR is 14.72% , compared to the industry median CAGR of 7.36% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,27,702 63,851
Gross Profit 13,791.8 8,169
Operating Profit 18,381 9,609
Net Profit 5,837 4,020.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.68 0.29
ROE 7.57 5.64
ROCE 9.33 7.2
Cash Conversion Cycle (days) 43.62 -1

Valuation & price assessment

Q.1 Stock return of JSW Steel Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 25.2% 14.9% 19.8% 23%
Q.3 Valuation ratios of JSW Steel Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 45.91 18.49 23.93
Price to Book 3.53 1.80 1.46
Price to Sales 2.36 1.25 0.74
EV to EBITDA 16.43 10.19 9.89

Check more companies

1. Vedanta
2. JSW Steel
3. Coal India
4. Tata Steel
5. Hindustan Zinc
6. Hindalco
7. Jindal Steel
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