JSW Steel Is Now The World's Most Valued Steel Company
JSW Steel has posted an impressive share price performance over various time frames. The stock has also historically outperformed its Indian peers.
JSW Group's flagship company, JSW Steel Ltd., has now become the most valued steel company in the world with a market cap of $30.31 billion.
The company's value now stands higher than the likes of United States and Luxembourg companies Nucor Corp and Arcelormittal, whose current market cap stands $91 million to $3 billion lower than the Indian steelmaker.
JSW Steel: Stock Performance In Indian Markets
JSW Steel has posted an impressive share price performance over various time frames. The stock has also historically outperformed its Indian peers.
It has risen 17% year-to date and 29% in the last year.
JSW Steel operates integrated steel plants in Vijayanagar, Dolvi, and Salem. The company also has overseas operations in the USA and Italy.
It has a steelmaking capacity of 35.7 MT, and aims to expand this to 43.5 MT by FY28 and 51.5 MT by FY31. As per Motilal Oswal, the company's expansion positions it well for long term growth, which would in turn help the company's volume growth.
As per Emkay Research, the company is the best play on steel in India, since it has always posted a volume growth that is higher than GDP. The company also has well-timed project delivery, which bodes well for its expansion plan.
What Analyst Like About JSW Steel
Twenty out of 35 analyst tracking the stock, currently have a 'buy' rating on the counter, according to Bloomberg. These are some reasons why:
Strong and on track capacity expansion plan.
Raw material integration.
Focus on efficiency and cost optimisation.
Higher value added product mix.
Expectations of Ebitda per tonne uptick.
