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JSW Steel Limited: Comprehensive Stock Analysis Report | Scrolls

Updated: Aug 18

by KarNivesh | 11 August, 2025


Executive summary

JSW Steel is India’s largest private steel producer and part of the well-known ₹23 trillion JSW Group. Founded by Sajjan Jindal, the company has grown from a single plant in 1982 to a global player with operations in India and the US.

JSW Steel Limited, is making bold moves to expand capacity to 50 MTPA by 2030. Backed by strategic partnerships with JFE Steel and green steel initiatives like India’s largest green hydrogen plant, the company aims to lead in both scale and sustainability.


JSW Steel Limited
JSW Steel Limited

JSW Steel makes steel products used in everything from buildings to cars. Its operations are “integrated,” meaning it controls the full process — from mining iron ore to producing the final steel sheets, rods, and specialty products.

Its main products are:

  • Flat steel (about 70% of revenue) – hot-rolled and cold-rolled coils, galvanized sheets

  • Long steel (about 18% of revenue) – TMT rebars, wire rods, structural steel

  • Specialty steel – electrical steel, automotive-grade steel, pipes, and plates

JSW Steel stock price performance over the last 2 years showing price trends and volatility
JSW Steel stock price performance over the last 2 years showing price trends and volatility

JSW Steel is in expansion mode:

  • Capacity Growth – Plans to increase annual production capacity from over 30 million tonnes to 50 million tonnes by 2030.

  • Major Investments – Spending ₹20,000 crore to expand the Dolvi plant by 3.7 million tonnes in FY26.

  • Green Steel – Built India’s largest green hydrogen plant in Vijayanagar to move towards carbon neutrality by 2050.

  • Partnerships – Teaming up with Japan’s JFE Steel to boost electrical steel production.


Financial Highlights – Q1 FY26

  • Revenue: ₹43,147 Cr (Flat YoY)

  • Net Profit: ₹2,209 Cr (+158% YoY)

  • EBITDA Margin: 17.56% (up from 12.83%)

  • Crude Steel Output: 7.26 MTPA (+14% YoY)


Strengths Driving Growth

  • Integrated Operations: From iron ore mining to finished steel

  • Strategic Locations: Near raw material sources & markets

  • Technology Access: Through global partnerships


Valuation & Risks

JSW Steel trades at a P/E of 53x, well above the industry average of 22x. While expansion plans are promising, high debt (₹95,957 Cr, Debt-to-Equity 1.24x) and import competition remain concerns.


Risks to Watch:

  • Rising leverage and interest coverage at 2.1x

  • Volatile raw material costs

  • Pressure from cheap imports


Market Performance

  • Current Price: ₹1,059.90

  • 52-Week Range: ₹880 – ₹1,074.90

  • 1-Year Return: +29.15%

  • Volatility: High (Beta 2.19)


Analysts are mixed – some target ₹1,200 on growth optimism, others urge caution due to valuations. For new investors, a correction to ₹800–850 could offer a safer entry point, while existing holders may Hold but monitor debt and margins.


Bottom Line:

JSW Steel is a leader in India’s steel growth story, but current valuations leave little margin for error. Strategic expansion and ESG leadership could drive long-term gains – but only if debt and competition risks are managed effectively.

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