Introduction
Iron and steel industries are the pillars of the Indian economy. Currently, India is one of the largest producers of steel and contributes around 2% to the Indian GDP. For stock market investors, steel and iron are two sectors that cannot be ignored. JSW Steel Ltd. is one of the most important players as it is one of the biggest steel manufacturing companies in the world with a net worth of $23 billion and is a major contributor to the “Make in India” campaign.
Here is a detailed account of the company’s performance and its standing in the share market for prospective traders and investors.
JSW Steel Financial Analysis
As of May 2024, the market cap of the companies is Rs 2,15,199 crores. As of April 2024, the company reported a turnover of Rs 47,086.14 lakhs. By earning quarterly revenue of Rs 1,018 crores, the company has become the first steel manufacturer to produce 1 crore tonnes of steel per annum.
The table below mentions other parameters that can help in comparing the growth rate of the company in two consecutive quarters.
| Metrics (Quarters) | Q3 FY24 (In Rs) | Q2 FY 24 (In Rs) |
| Revenue From Operations | 41,940 crores | 44,584 crores |
| Net Profit | 2,450 crores | 2,773 crores |
| Basic EPS | Rs 9.92 | Rs 11.38 |
JSW Share Price Analysis
The following JSW Steel share price chart gives a clear picture of the company’s share price trends.
Currently, the JSW Steel share price is around Rs 850 as of May. The share price returns have gone up by 200% in the past 5 years and 14% over the past 3 years. EPS TTM ratio of the company is Rs 45.71.
The shareholding of the company comprises 44.81% Promoters, 26.06% Foreign institutional Investors, 10.32% Domestic Institutional Investors, 18.44% public shareholders and the remaining are with other financial entities.
The steel company is included in major stock indices such as BSE 100, BSE 200, Sensex, CNX Midcap 200, Nifty 50 and BSE 500.
Should An Investor Invest in JSW Steel?
Out of 27 expert analysts, 13 recommend buying these shares, 7 recommend holding and 7 suggest selling them. There is a healthy demand for growth in steel in India which will add positively to the performance of the company in the coming quarters.
The returns from shares seem promising as the company is using the latest technology to produce steel. For instance, JSW Steel is the first such firm to have Corex technology for hot metal production to produce “green steel”.
Therefore, it can be safely stated that the company is showing a positive growth trajectory and is a safe investment.
Conclusion
Founded in 1982, the company is a part of the JSW group. It has grown over the years and can be a good investment opportunity for diversification. However, it is very important to do your own due diligence and research beforehand. Happy Investing!
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