Check Before You Invest : JSW Steel Ltd

Q: 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: Is JSW Steel Ltd a good quality company?

JSW Steel Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is JSW Steel Ltd undervalued or overvalued?

JSW Steel Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 43.33, Historic Median: 32.27. Price to Book, Current: 3.52, Historic Median: 2.94. Price to Sales, Current: 2.34, Historic Median: 1.66. EV to EBITDA, Current: 16.21, Historic Median: 11.89

Q: 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

Q: Revenue growth of JSW Steel Ltd?

JSW Steel Ltd revenue growth is 4% for FY-2026, which is below its 5-year CAGR of 13.44%, indicating slower growth.

Q: Gross Profit margin of JSW Steel Ltd?

JSW Steel Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.6% for FY-2026, which is in line with its 5-year median of 11.6%, indicating stable margins.

Q: Operating Profit Margin of JSW Steel Ltd?

JSW Steel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.9% for FY-2026, which is in line with its 5-year median of 16.54% indicating stable margins.

Q: Net Profit Margin of JSW Steel Ltd?

JSW Steel Ltd Net Profit Margin is 4.91% for FY-2026, is in line with its 5-year median of 4.91%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.6, Historic Median: 11.6. Operating Profit Margin (%), Current: 16.9, Historic Median: 16.54. Net Profit Margin (%), Current: 4.91, Historic Median: 4.91

Q: Return on Asset of JSW Steel Ltd?

JSW Steel Ltd Return on Asset is 3.3%, which is in line with its 5-year historical median of 3.3%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of JSW Steel Ltd?

JSW Steel Ltd Return on capital employed is 10.28% for FY-2026, which is in line with its 5-year historical median of 10.3%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Check Before You Invest : JSW Steel Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is JSW Steel Ltd undervalued or overvalued?

JSW Steel Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	43.33	32.27
Price to Book	3.52	2.94
Price to Sales	2.34	1.66
EV to EBITDA	16.21	11.89

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of JSW Steel Ltd?

JSW Steel Ltd revenue growth is 4% for FY-2026, which is below its 5-year CAGR of 13.44%, 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 11.6% for FY-2026, which is in line with its 5-year median of 11.6%, indicating stable 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 16.9% for FY-2026, which is in line with its 5-year median of 16.54% indicating stable margins.

Q.4 Net Profit Margin of JSW Steel Ltd?

JSW Steel Ltd Net Profit Margin is 4.91% for FY-2026, is in line with its 5-year median of 4.91%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.6	11.6
Operating Profit Margin (%)	16.9	16.54
Net Profit Margin (%)	4.91	4.91

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of JSW Steel Ltd?

JSW Steel Ltd Return on Asset is 3.3%, which is in line with its 5-year historical median of 3.3%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of JSW Steel Ltd?

JSW Steel Ltd Return on capital employed is 10.28% for FY-2026, which is in line with its 5-year historical median of 10.3%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of JSW Steel Ltd?

JSW Steel Ltd Return on equity is 7.92% for FY-2026, which is in line with its 5-year historical median of 7.92%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of JSW Steel Ltd?

JSW Steel Ltd Cash conversion cycle is 43 days, in line with its 5-year historical median of 42 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.67	0.75
ROE (%)	7.92	7.92
ROCE (%)	10.28	10.3
Cash Conversion Cycle	43 days	42 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of JSW Steel Ltd?

JSW Steel Ltd Debt-to-Equity ratio is 0.78, which is above the industry average of 0.31, 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 4.42, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of JSW Steel Ltd?

Q.1 Promoter shareholding and pledge status of JSW Steel Ltd?

Promoters hold 44.29% of the JSW Steel Ltd, with 11.60% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does JSW Steel Ltd performance compare with that of its Peers?

Q.1 Revenue growth of JSW Steel Ltd vs industry peers?

JSW Steel Ltd revenue CAGR is 13.44%, compared to the industry median CAGR of 12.06%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	4	12.1
Gross Profit Growth (%)	12	1.8
Operating Profit Growth (%)	9.9	2.3
Net Profit Growth (%)	11.7	-3.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.67	0.66
ROE (%)	7.92	9.43
ROCE (%)	10.28	11.6
Cash Conversion Cycle (days)	43.37	22

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 22.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	22.5%	11.2%	16.5%	23.7%

Q.2 Valuation ratios of JSW Steel Ltd vs historical?

The current P/E ratio of 43.33 is higher than its historical median of 32.27, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	43.33	32.27	17.36
Price to Book	3.52	2.94	1.63
Price to Sales	2.34	1.66	0.74
EV to EBITDA	16.21	11.89	10.05

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Check Before You Invest : JSW Steel Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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