JSW Steel Ltd - Stock Valuation and Financial Performance

BSE: 500228 | NSE: JSWSTEEL | Steel & Iron Products | Large Cap

JSW Steel Share Price

868.50 -15.30 -1.73%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on JSW Steel

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

JSW Steel stock performance -

mw4me loader
P/E Ratio (SA):
21.89
Market Cap:
2,16,129.2 Cr.
52-wk low:
681.3
52-wk high:
895.6

Is JSW Steel Ltd an attractive stock to invest in?

1. Is JSW Steel Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that JSW Steel Ltd is a good quality company.

2. Is JSW Steel Ltd undervalued or overvalued?

The key valuation ratios of JSW Steel Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is JSW Steel Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of JSW Steel Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of JSW Steel:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
JSW Steel Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 10.3%8.9%6%17.2%11.7%15.6%10.2%11.5%18%8.2%-
Value Creation
Index
-0.1-0.2-0.50.50.00.4-0.10.00.6-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 45,29846,08736,70752,29066,46477,18764,26270,7271,18,8201,31,6871,35,451
Sales YoY Gr.-1.7%-20.4%42.5%27.1%16.1%-16.8%10.1%68%10.8%-
Adj EPS 11.2114.331.920.535.224.234.968.625.240.4
YoY Gr.--1.8%-61.2%651.5%-35.9%72.1%-31.3%44.2%96.6%-63.2%-
BVPS (₹) 97.110284.8100.1115.4144.8159.1194.2263.3263.3301.3
Adj Net
Profit
2,6952,6481,0207,6764,9268,4615,8108,39416,4636,0629,872
Cash Flow from Ops. 5,2748,4665,6698,56112,17415,57814,11017,55723,33520,444-
Debt/CF from Ops. 5.23.36.34.532.83.72.92.22.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 12.6%14.7%27%10.8%
Adj EPS 9.5%4.3%1.4%-63.2%
BVPS11.7%17.9%18.3%-0%
Share Price 23.4% 24.8% 12.9% 20.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
12.210.64.434.518.926.915.919.729.89.514.3
Op. Profit
Mgn %
2019.817.923.32124.620.127.226.812.717.6
Net Profit
Mgn %
65.82.814.77.411911.913.94.67.3
Debt to
Equity
1.11.11.81.61.31.31.41.10.80.9-
Working Cap
Days
13115116511613114418215011212458
Cash Conv.
Cycle
31415145454654353342-6

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 27.02%

Debt to equity has declined versus last 3 years average to 0.87

Return on Equity has declined versus last 3 years average to 14.30%

Net Profit has been subdued in last 3 years 1.39%

Sales growth is not so good in last 4 quarters at 5.33%

Latest Financials - JSW Steel Ltd.

Standalone Consolidated
TTM EPS (₹) 40.4 45.7
TTM Sales (₹ Cr.) 1,35,451 1,73,288
BVPS (₹.) 301.3 312.3
Reserves (₹ Cr.) 73,443 76,119
P/BV 2.93 2.83
PE 21.89 19.34
From the Market
52 Week Low / High (₹) 681.30 / 895.60
All Time Low / High (₹) 0.18 / 895.60
Market Cap (₹ Cr.) 2,16,129
Equity (₹ Cr.) 244.6
Face Value (₹) 1
Industry PE 26.8

Management X-Ray of JSW Steel:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *13.8217.8115.8316.7915.2117.5716.3515.0314.1214.80
* Pledged shares as % of Promoter's holding (%)

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Analyst's Notes

Key Ratios of JSW Steel

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales45,29846,08736,70752,29066,46477,18764,26270,7271,18,8201,31,687
Operating Expenses 36,51537,36230,79245,99052,72358,67552,07151,50987,3841,16,531
Manufacturing Costs8,0319,1588,13310,31812,52615,96214,30320,24634,51935,060
Material Costs26,95726,06420,00027,95537,47039,49833,46628,07048,57975,694
Employee Cost 8009479531,1681,2601,4351,4961,5011,8701,975
Other Costs 7281,1931,7066,5491,4671,7802,8061,6922,4163,802
Operating Profit 8,7838,7255,9156,30013,74118,51212,19119,21831,43615,156
Operating Profit Margin (%) 19.4%18.9%16.1%12.0%20.7%24.0%19.0%27.2%26.5%11.5%
Other Income 3316137725,4992134059547102,3611,787
Interest 2,7402,9093,2193,6433,5913,7894,0223,5653,8495,023
Depreciation 2,7262,7852,8473,0253,0543,4213,5223,7814,5114,952
Exceptional Items -1,692-396-5,8600-2340-1,309-386-7220
Profit Before Tax 1,9553,249-5,2395,1317,07511,7074,29212,19624,7156,968
Tax 6211,082-1,7101,5542,4503,586-9993,8038,0132,031
Profit After Tax 1,3352,166-3,5303,5774,6258,1215,2918,39316,7024,937
PAT Margin (%) 2.9%4.7%-9.6%6.8%7.0%10.5%8.2%11.9%14.1%3.7%
Adjusted EPS (₹)5.48.9-14.714.919.233.822.134.869.620.6
Dividend Payout Ratio (%)20%12%-5%15%17%12%9%19%25%17%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 24,28425,72520,41024,08527,86634,80238,24046,86063,26063,250
Share Capital 1,0671,067301301302301301302301301
Reserves 23,21724,65720,10923,78427,56434,50137,93946,55862,95962,949
Minority Interest0000000000
Debt24,97525,76132,21533,23331,72333,03746,06044,70541,89748,349
Long Term Debt21,05425,49730,14528,35829,55127,66639,24739,55141,17648,346
Short Term Debt3,9212642,0704,8752,1725,3716,8135,1547213
Trade Payables9,99112,51511,01111,60413,98813,12813,35412,15024,32830,705
Others Liabilities 9,17510,8919,39212,03711,97426,45824,38829,51733,38530,537
Total Liabilities 68,42674,89273,02880,95985,5511,07,4251,22,0421,33,2321,62,8701,72,841

Fixed Assets

Gross Block49,70353,79249,38856,03958,34763,79164,17568,94191,76299,818
Accumulated Depreciation12,40815,2232,8285,7738,77912,01913,63316,99920,11624,762
Net Fixed Assets37,29538,56946,56050,26649,56851,77250,54251,94271,64675,056
CWIP 6,8577,7906,4393,0273,39210,44324,14129,04212,59910,506
Investments 4,3814,1974,7645,0504,8785,3975,99912,45818,02824,320
Inventories6,1978,5856,7429,27010,08210,8159,62310,69221,02819,517
Trade Receivables2,2192,0272,5113,9484,6926,7703,1663,3336,1466,000
Cash Equivalents 4661,7955991,0276015,81311,40111,74615,52718,716
Others Assets11,01211,9295,4148,37112,33816,41517,17014,01917,89618,726
Total Assets 68,42674,89273,02880,95985,5511,07,4251,22,0421,33,2321,62,8701,72,841

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5,2748,4665,6698,56112,17415,57814,11017,55723,33520,444
PBT 1,9553,249-5,2395,1317,07511,7074,29212,19624,7156,968
Adjustment 4,7615,09411,5546,3446,7776,7918,6576,3856,95110,396
Changes in Working Capital -1090834-491-2891-471-4552147636-36793546
Tax Paid -353-711-154-23-1,207-2,465-986-1,660-4,652-466
Cash Flow From Investing Activity -4,738-6,275-5,033-6,284-6,134-11,432-19,092-3,759-17,652-7,361
Capex -4,399-4,313-3,905-3,927-3,769-8,302-10,699-7,852-7,429-6,255
Net Investments 37-784855-478485-22-7,5217,433-7,2212,809
Others -375-1,178-1,983-1,879-2,850-3,108-872-3,340-3,002-3,915
Cash Flow From Financing Activity -366-1,805-982-2,030-6,3017253,054-6,115-9,134-7,085
Net Proceeds from Shares 005357490107397259
Net Proceeds from Borrowing -3884,364286-8077972,4948,2413,3122,2993,128
Interest Paid -2,228-2,165-2,806-3,494-3,417-3,598-4,371-4,015-3,890-4,808
Dividend Paid -315-344-320-218-655-907-1,190-483-1,571-4,194
Others 2,565-3,6601,8062,432-3,0752,736267-4,968-6,044-1,270
Net Cash Flow 170386-345247-2614,871-1,9287,683-3,4515,998
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)6.29.01-15.6916.1217.8525.9714.5119.7530.377.81
ROCE (%)10.5111.72-3.6814.7816.8321.729.8216.6626.8810.3
Asset Turnover Ratio0.80.70.550.740.810.80.560.550.80.78
PAT to CFO Conversion(x)3.953.91N/A2.392.631.922.672.091.44.14
Working Capital Days
Receivable Days15152021232728171517
Inventory Days41546851524958524956
Payable Days36435942444752675749

JSW Steel Ltd Stock News

JSW Steel Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of JSW Steel on 12-Apr-2024 10:20 is ₹868.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 10:20 the market cap of JSW Steel stood at ₹2,16,129.2.
The latest P/E ratio of JSW Steel as of 12-Apr-2024 10:20 is 21.89.
The latest P/B ratio of JSW Steel as of 12-Apr-2024 10:20 is 2.93.
The 52-week high of JSW Steel is ₹895.6 and the 52-week low is ₹681.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of JSW Steel is ₹1,35,451 ( Cr.) .

About JSW Steel Ltd

JSW Steel Limited is a public limited company incorporated in India on March 15, 1994 under the Companies Act, 1956 and listed on the Bombay Stock Exchange and National Stock Exchange. The Company is an integrated manufacturer of diverse range of steel products with its manufacturing facilities located at Vijaynagar Works in Karnataka, Dolvi Works in Maharashtra and Salem works in Tamil Nadu.

The Group set up its first steel plant in 1982 at Vasind near Mumbai. Soon after, it acquired Piramal Steel Ltd., which operated a mini steel mill at Tarapur in Maharashtra. The Jindals, who had wide experience in the steel industry, renamed it as Jindal Iron and Steel Co. (JISCO). In 1994, in order to achieve the vision of moving up the value chain and building a strong, resilient company, Jindal Vijayanagar Steel (JVSL) was setup, with its plant located at Toranagallu in the Bellary-Hospet area of Karnataka, the heart of the high-grade iron ore belt and spread over 3,700 acres of land. In 2005, JISCO and JVSL merged to form JSW Steel.

Business area of the company

JSW Steel is primarily engaged in the business of manufacture and sale of iron and steel products.

Products of the company

  • Hot Rolled (HR)
  • Cold Rolled (CR)
  • Galvanised
  • Galvalume
  • Color Coated Products
  • Neosteel TMT Bars
  • Wire Rods
  • Special Steel

Awards & Achievements

  • JSW Steel bags the Steel Minister’s Trophy for being the 2nd best integrated steel plant in the country
  • Dolvi Works conferred with 'Certificate of Appreciation' in Prime Minister's Trophy 16-17
  • JSW Steel wins at Asia Sustainability Reporting Awards
  • JSW Steel bagged Global Innovation Award at 2019 India Perspective
  • Grow Care India Environment Award-2018 to Dolvi Works
  • JSW Steel awarded for the Best Raw Material Supplier of 2018
  • JSW Steel awarded for Outstanding Support for the year 2019 by Honda Cars
  • JSW Steel Coated, Vasind wins the 1st Prize in the - 13th State Level Award for Excellence in Energy Conservation & Management
  • Apex India Energy Efficiency Award -2018
  • Toyota recognizes JSW Steel for world-class quality
  • JSWSCPL Vasind location has achieved the prestigious award ‘Gold Medal’ in INDIA GREEN MANUFACTURING CHALLENGE-2018 by M/s. International Research Institute for Manufacturing, (IRIM) India
  • JSW Steel gets recognised by Worldsteel Sustainable Champions of 2018
  • National Institution for Quality & Reliability (INQR) honours JSW Steel Vijyayanagar works
  • Bombay Iron Merchants’ Association visit to Vijayanagar Works
  • JSW Steel Coated Products Ltd., Vasind has been awarded with Gold Category for Excellence in Energy Efficiency for Year-2018 by Apex India Foundation in the sector of Metal and Mining
  • JSW Steel Coated Products Ltd. has been awarded a Special Trophy for Excellence in Exports of MEIS Items for the year 2016-17 in the category of Large Enterprises by EEPC India, Western Region
  • JSW Steel's Dolvi Works received 'PLATINUM' level recognition in CII Exim Bank Award for Business Excellence - 2018
  • JSW wins the prestigious Deming Prize for its excellence in TQM
  • JSW Steel included in the NIFTY 50 Index
  • Ranked sixth among the best operating steel plants in the world (World Steel Dynamics, June 2017)
  • Featured in the Vigeo Eiris Emerging 70 group sustainability rating
  • Best CSR Practice award 2018: CSR Summit (February 2018)
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