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JSW Steel Ltd. Stock Analysis

Large Cap
Evaluated by 3747 users | BSE: 500228 | NSE: JSWSTEEL |
Steel & Iron Products

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...

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
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.24%9.46%8.98%10.33%8.89%5.92%11.01%11.71%15.46%11.2%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 23,36732,12335,49245,29846,08736,70752,29066,46477,18764,262
Y-o-Y Gr. Rt.-37.5%10.5%27.6%1.7%-20.4%42.5%27.1%16.1%-16.8%
Adjusted EPS (Rs.) 8.99.779.1311.1510.954.2316.6920.4735.2327.9
Y-o-Y Gr. Rt.-9.8%-6.6%22.1%-1.8%-61.4%294.6%22.7%72.1%-20.8%
Book Value per Share (Rs.) 73.2781.387.8397.05101.9584.83100.1115.37144.75159.08
Adjusted Net Profit 1,9852,1792,0372,6952,6481,0154,0124,9268,4616,700
Net Op. Cash Flow (Rs. Cr.) 2,0432,1393,9255,2748,4665,6698,56112,17415,57814,110
Debt to Cash Flow from Ops 5.857.454.565.153.326.374.5132.853.71
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
JSW Steel Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.9%6.9%7.1%-16.8%
Adjusted EPS 13.5%20.6%18.7%-20.8%
Book Value per Share 99.316.79.9
Share Price 21.4% 32.1% 11% 32.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 14.7412.210.612.1910.594.418.0318.9426.9418.29
Operating Profit Margin (%) 20.7117.5317.782019.8217.8613.2520.9924.6320.58
Net Profit Margin (%) 8.56.785.745.955.752.777.677.4110.9610.43
Debt to Equity 0.720.860.91.121.11.771.61.311.281.37
Working Capital Days 101117138131151165116131144182
Cash Conversion Cycle 32393731415145454654
Entity Percentage Holding
Promoters 44.07%
Institutions 19.69%
Non-Institutions 36.23%
Others 0.01%
Pledged *41.0738.6343.6046.2749.1350.1632.5239.7935.9326.28
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of JSW Steel Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that JSW Steel Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of JSW Steel Ltd.'s performance infers:

JSW Steel Ltd. earnings have grown by 20.6%, whereas share price has appreciated 32.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of JSW Steel Ltd. share prices over the last 10 years. Here is what we found out:

JSW Steel Ltd. share price has appreciated 12.2% annually over the past ten years.

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

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)
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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