JSW Steel Ltd Stock Analysis

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

BSE Share Price Jan 18, 18:01
680.00 -19.15 (-2.74%)

DeciZen - Make an Informed Decision on JSW Steel

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued
P/E P/S EV/EBITDA

3. Price Trend

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.

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 some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 9.5%9%10.3%8.9%6%11.1%11.7%15.5%10.2%11.7%-
Value Creation Index -0.3-0.3-0.1-0.2-0.5-0.00.00.4-0.10.0-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 32,12335,49245,29846,08736,70752,29066,46477,18764,26270,72796,051
YoY Gr. Rt. %-10.5%27.6%1.7%-20.4%42.5%27.1%16.1%-16.8%10.1%-
Adj EPS 9.89.111.2114.316.720.535.224.234.972.4
YoY Gr. Rt. %--6.6%22.1%-1.8%-61.1%292.3%22.5%72.1%-31.3%44.2%-
BVPS (₹) 81.387.897.110284.8100.1115.4144.8159.1194.2239.9
Adj Net Profit 2,1792,0372,6952,6481,0224,0164,9268,4615,8138,38517,488
Cash Flow from Ops. 2,1393,9255,2748,4665,6698,56112,17415,57814,11017,733-
Debt/CF from Ops. 7.54.65.23.36.34.532.93.72.8-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales 9.2%14%2.1%10.1%
Adj EPS 15.2%52.3%19.5%44.2%
BVPS 10.2181922.1
Share Price 26.2% 28.9% 33.5% 76.9%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 12.210.612.210.64.418.118.926.915.919.733.3
Op. Profit Mgn % 17.517.82019.817.913.32124.620.127.233.1
Net Profit Mgn % 6.85.765.82.87.77.4119.111.918.2
Debt to Equity 0.90.91.11.11.81.61.31.31.41.10.7
Working Cap Days 117138131151165116131144182150130
Cash Conv. Cycle 393731415145454654351

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 33.30%

Net Profit is growing at healthy rate in last 3 years 19.46%

Sales growth is good in last 4 quarters at 76.69%

Sales growth has been subdued in last 3 years 2.09%

Debt to equity has increased versus last 3 years average to 1.05

Latest Financials - JSW Steel Ltd.

Standalone Consolidated
TTM EPS (₹) 72.4 82.6
TTM Sales (₹ Cr.) 96,051 1,08,284
BVPS (₹.) 239.9 251.4
Reserves (₹ Cr.) 57,757 60,531
P/BV 2.91 2.78
PE 9.66 8.47
From the Market
52 Week Low / High (₹) 356.00 / 776.50
All Time Low / High (₹) 0.18 / 776.50
Market Cap (₹ Cr.) 1,69,000
Equity (₹ Cr.) 241.7
Face Value (₹) 1
Industry PE 7.5

Management X-Ray of JSW Steel :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *50.1632.5239.7935.9326.2822.1017.6714.7513.8217.81
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

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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