Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500228 | NSE: JSWSTEEL

Fundamental Analysis of JSW Steel Ltd

About the Company - JSW Steel Ltd

JSW Steel Ltd. is a Public Limited Listed company incorporated on 15/03/1994 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27102MH1994PLC152925 and registration number is 152925. Currently Company is involved in the business activities of Casting of metals. Company’s Total Operating Revenue is Rs. 118820.00 Cr. and Equity Capital is Rs. 301.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SteelJSW Centre, Mumbai Maharashtra 400051jswsl.investor@jsw.in
http://www.jsw.in
Management
NamePosition Held
Mrs. Savitri Devi JindalChairperson Emeritus
Mr. Sajjan JindalChairman & Managing Director
Mr. Jayant AcharyaJoint Managing Director & CEO
Mr. Seturaman MahalingamInd. Non-Executive Director
Mr. Harsh Charandas MariwalaInd. Non-Executive Director
Dr.(Mrs.) Punita Kumar SinhaInd. Non-Executive Director
Mr. Haigreve KhaitanInd. Non-Executive Director
Mrs. Nirupama RaoInd. Non-Executive Director
Mr. Marcel FasswaldInd. Non-Executive Director
Ms. Fiona Jane Mary PaulusInd. Non-Executive Director
Dr. M R RaviNominee Director
Mr. Hiroyuki OgawaNominee Director
Mr. Gajraj Singh RathoreWhole Time Director & COO

JSW Steel Ltd. Share Price Update

Share PriceValue
Today₹805.25
Previous Day₹810.40

Basic Stock Data of JSW Steel Ltd

Market Cap 1,99,769 Cr.
Current Price 817
High / Low896/649
Stock P/E18.5
Book Value 302
Dividend Yield0.42 %
ROCE8.33 %
ROE5.64 %
Face Value 1.00

Data Source: screener.in

Competitors of JSW Steel Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tata Steel Ltd 1,81,573 Cr. 145147/10293.9 72.52.48 %12.6 %7.28 % 1.00
SAL Steel Ltd 204 Cr. 24.030.6/12.9 4.930.00 %8.12 %8.95 % 10.0
Steel Authority of India Ltd 52,871 Cr. 128150/77.615.6 1361.17 %5.89 %3.57 % 10.0
Aerpace Industries Ltd 150 Cr. 11.011.0/1.19 0.210.00 %5.82 %3.71 % 1.00
Manaksia Steels Ltd 501 Cr. 76.5107/34.117.2 47.60.00 %6.37 %4.01 % 1.00
Industry Average47,059.80 Cr76.9025.3452.250.73%7.76%5.50%4.60

Technocraft Industries (India) Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales19,26421,85926,93428,90232,50338,07146,89538,08641,77839,13446,96242,21344,584
Expenses14,85015,91818,49418,62822,08628,93937,74233,79440,08234,64339,03135,20136,722
Operating Profit4,4145,9418,44010,27410,4179,1329,1534,2921,6964,4917,9317,0127,862
OPM %23%27%31%36%32%24%20%11%4%11%17%17%18%
Other Income199147905211,549176-508189779188465331826
Interest9599771,0059939361,2831,7561,4221,5231,8192,1381,9632,084
Depreciation1,1491,2301,2531,1831,2391,7641,8151,7781,8051,8822,0091,9002,019
Profit before tax2,5053,8816,2728,6199,7916,2615,0741,281-8539784,2493,4804,585
Tax %36%31%33%32%27%28%34%34%-7%52%12%30%40%
Net Profit1,5952,6694,1915,9007,1794,5163,343839-9154743,7412,4282,773
EPS in Rs6.5911.0917.3724.4229.6618.0213.383.47-3.512.0315.169.6711.29

JSW Steel Ltd Quarterly Chart

Technocraft Industries (India) Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales34,36838,21051,22052,97241,54655,60471,93384,75773,32679,839146,371165,960172,893
Expenses27,57131,69842,05143,60835,12443,29657,01765,82761,51359,661107,257147,490145,597
Operating Profit6,7976,5129,1699,3646,42212,30814,91618,93011,81320,17839,11418,47027,296
OPM %20%17%18%18%15%22%21%22%16%25%27%11%16%
Other Income-1,444-307-1,630103-1,96618-177196-2894731,6001,5611,810
Interest1,4271,9673,0483,4933,6013,7683,7013,9174,2653,9574,9686,9028,004
Depreciation1,9332,2373,1833,4343,3233,4303,3874,0414,2464,6796,0017,4747,810
Profit before tax1,9931,9991,3082,539-2,4685,1287,65111,1683,01312,01529,7455,65513,292
Tax %25%42%70%32%80%33%20%33%-30%34%30%27%
Net Profit5579294021,722-4813,4676,1137,5243,9197,87320,9384,1399,416
EPS in Rs2.414.321.877.43-1.3914.5725.7131.6016.6732.7385.4917.1438.15
Dividend Payout %40%30%74%19%-67%19%16%16%15%25%25%25%

JSW Steel Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)66.79%-56.73%328.36%-127.93%820.79%76.32%23.08%-47.91%100.89%165.95%-80.23%
Change in YoY Net Profit Growth (%)0.00%-123.51%385.09%-456.29%948.72%-744.47%-53.24%-71.00%148.81%65.05%-246.18%

JSW Steel Ltd Growth

Compounded Sales Growth
10 Years:16%
5 Years:18%
3 Years:31%
TTM:6%
Compounded Profit Growth
10 Years:13%
5 Years:-10%
3 Years:-6%
TTM:196%
Stock Price CAGR
10 Years:25%
5 Years:24%
3 Years:27%
1 Year:18%
Return on Equity
10 Years:17%
5 Years:19%
3 Years:20%
Last Year:6%

Technocraft Industries (India) Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital284284303303301301302301301302301301305
Reserves16,18616,78120,87121,98718,66522,34627,69634,49436,29845,30866,99665,39473,653
Preference Capital279279764764002082024262933
Borrowings19,90921,34634,76237,99042,20443,33439,18547,37661,39966,70172,20880,82081,874
Other Liabilities17,54319,10221,70425,37420,73722,02424,78732,62633,82234,85256,98064,02460,106
Total Liabilities53,92257,51377,64085,65481,90788,00591,970114,797131,820147,163196,485210,539215,938
Fixed Assets33,81234,71747,04652,17656,14058,73057,84862,64462,08564,91799,880104,452108,780
CWIP2,8325,8989,4008,2657,2714,3635,95011,88927,19132,56616,90522,16628,379
Investments2,0901,7506635991,1951,3661,4691,8941,2597,4274,9404,8067,185
Other Assets15,18915,14820,53124,61317,30223,54626,70338,37041,28542,25374,76079,11571,594
Total Assets53,92257,51377,64085,65481,90788,00591,970114,797131,820147,163196,485210,539215,938

JSW Steel Ltd Reserves and Borrowings Chart

JSW Steel Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3,5125,8442,5947,8766,8977,88812,37914,63312,78518,78926,27023,323
Cash from Investing Activity -4,101-5,433-5,618-7,372-3,857-5,094-4,529-11,387-19,589-7,702-14,748-10,730
Cash from Financing Activity 698-7913,300-169-3,151-2,710-8,1851,7535,189-3,110-14,657-5,977
Net Cash Flow110-380276334-11184-3354,999-1,6157,977-3,1356,616

Technocraft Industries (India) Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days162016172427243122211916
Inventory Days978398136135147118123130160208130
Days Payable162155141175207172149137169171190149
Cash Conversion Cycle-50-52-26-23-482-717-17936-4
Working Capital Days-108-66-44-49-84-34-25-36-53-248-12
ROCE %14%11%13%10%5%14%18%20%9%15%28%8%

JSW Steel Ltd Financial Efficiency Indicators Chart

Technocraft Industries (India) Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters44.07%44.07%44.07%44.09%44.72%45.01%45.02%45.20%45.20%45.41%45.41%44.79%
FIIs13.31%12.69%12.93%12.17%11.21%11.58%10.61%10.75%26.04%26.01%25.98%26.13%
DIIs6.29%7.11%7.16%8.06%8.38%7.94%9.07%9.25%9.34%9.47%9.59%9.50%
Government0.51%0.51%0.51%0.51%0.51%0.51%0.51%0.51%0.51%0.51%0.51%0.51%
Public35.31%35.15%34.92%34.80%34.85%34.65%34.14%33.70%18.35%18.07%17.99%18.64%
Others0.50%0.47%0.41%0.37%0.33%0.31%0.65%0.60%0.57%0.53%0.51%0.43%
No. of Shareholders5,67,8135,63,1216,57,6636,86,7246,79,9066,59,8796,94,9166,67,1736,08,4486,05,0195,86,9976,63,179

JSW Steel Ltd Shareholding Pattern Chart

No. of JSW Steel Ltd Shareholders

JSW Steel Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF172395040.841381.06
SBI S&P BSE Sensex ETF123310530.99985.99
Nippon India ETF Nifty 50 BeES18225680.84146.01
SBI Arbitrage Opportunities Fund16287750.55130.48
ICICI Prudential Equity - Arbitrage Fund14161500.68104.28
UTI Nifty 50 Index Fund14006310.82103.14
HDFC Index Nifty 50 Plan - Regular Plan10898630.8280.25
HDFC Index S&P BSE Sensex Fund - Regular Plan7116640.9552.38
HDFC Equity Savings Fund - Regular Plan6777001.5849.9
SBI Nifty Index Fund5451250.8443.67

JSW Steel Ltd ROCE Trend

JSW Steel Ltd EPS Trend

JSW Steel Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)17.2585.9632.9116.7831.77
Diluted EPS (Rs.)17.1485.4932.7316.6731.60
Cash EPS (Rs.)39.0486.4541.5627.4338.52
Book Value[Excl.RevalReserv]/Share (Rs.)222.72227.69152.80119.68114.10
Book Value[Incl.RevalReserv]/Share (Rs.)222.72227.69152.80119.68114.10
Revenue From Operations / Share (Rs.)551.36486.28264.37243.61281.58
PBDIT / Share (Rs.)65.04134.6868.6541.2663.64
PBIT / Share (Rs.)40.21114.7453.1627.1550.22
PBT / Share (Rs.)19.2495.7739.7810.3137.20
Net Profit / Share (Rs.)14.2166.5126.0713.3225.10
NP After MI And SOA / Share (Rs.)13.7768.6526.2013.3925.38
PBDIT Margin (%)11.7927.6925.9616.9322.60
PBIT Margin (%)7.2923.5920.1011.1417.83
PBT Margin (%)3.4819.6915.044.2313.21
Net Profit Margin (%)2.5713.679.855.468.91
NP After MI And SOA Margin (%)2.4914.119.905.499.01
Return on Networth / Equity (%)6.3030.7016.9111.0121.95
Return on Capital Employeed (%)8.5724.8515.289.2720.73
Return On Assets (%)1.9610.515.333.056.64
Long Term Debt / Equity (X)0.940.861.061.220.85
Total Debt / Equity (X)1.201.041.111.451.03
Asset Turnover Ratio (%)0.710.760.530.540.77
Current Ratio (X)0.971.140.820.830.79
Quick Ratio (X)0.500.540.490.510.45
Inventory Turnover Ratio (X)2.832.922.352.743.35
Dividend Payout Ratio (NP) (%)101.207.606.1029.6512.21
Dividend Payout Ratio (CP) (%)36.095.893.8314.437.98
Earning Retention Ratio (%)-1.2092.4093.9070.3587.79
Cash Earning Retention Ratio (%)63.9194.1196.1785.5792.02
Interest Coverage Ratio (X)2.848.165.242.914.89
Interest Coverage Ratio (Post Tax) (X)1.535.183.012.132.93
Enterprise Value (Cr.)266575.05274342.60179588.7084501.45117499.85
EV / Net Operating Revenue (X)1.611.872.251.151.39
EV / EBITDA (X)13.626.778.666.806.13
MarketCap / Net Operating Revenue (X)1.251.511.770.601.04
Retention Ratios (%)-1.2092.3993.8970.3487.78
Price / BV (X)3.153.283.021.202.53
Price / Net Operating Revenue (X)1.251.511.770.601.04
EarningsYield0.020.090.050.090.08

JSW Steel Ltd Profitability Ratios (%)

JSW Steel Ltd Liquidity Ratios

JSW Steel Ltd Liquidity Ratios (%)

JSW Steel Ltd Interest Coverage Ratios (X)

JSW Steel Ltd Valuation Ratios

Fair Value / Intrinsic Value of JSW Steel Ltd

Fair Value: ₹316.43

The stock is overvalued by 61.27% compared to the current price ₹817

*Investments are subject to market risks

Strength and Weakness of JSW Steel Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -48.75, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -13.58, which is a positive sign.
  3. The company has higher reserves (35,986.85 cr) compared to borrowings (186.62 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (81.85 cr) and profit (6.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 57.10 and average Dividend Yield of 15.99%.
  2. The stock has a low average ROCE of 13.92%, which may not be favorable.

Should I Buy JSW Steel Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in JSW Steel Ltd:
    1. Net Profit Margin: 2.57%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.57% (Industry Average ROCE: 8.99%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 1.53
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.50
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 18.3 (Industry average Stock P/E: 8.7)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✗ Total Debt / Equity: 1.20
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in JSW Steel Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE