JSW Steel (JSWSTEEL)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

JSW Steel is a large steelmaker with a ₹3.10 lakh Cr market cap, priced at ₹1270. Steel is cyclical and commodity-like, so my first question is whether it earns durable returns. The Piotroski F-Score of 8/9 and free cash flow of ₹3,887 Cr are encouraging, and sales growth of 11.87%, profit growth of 29.75%, and a five-year revenue CAGR of 18.15% show scale and momentum. The latest quarter had sales of ₹45,991 Cr and net profit of ₹2,410 Cr. But ROE of 9.36% and ROCE of 8.11% are not the hallmarks of a wide moat; I want persistent double-digit returns on capital. Debt/equity of 0.95 is a real burden in a downturn, though the current ratio of 1.32 is adequate and Altman Z-Score of 2.61 sits in the grey zone. Valuation is the rub. P/E of 12.53 looks modest, but P/B is 3.10, and book value is ₹409.91, so I pay ₹1270 for ₹410 of accounting net worth. The Graham Number is ₹482.18, giving a margin of safety of -162.29%, and DCF intrinsic value is ₹850.93, both below the market price. PEG of 10.35 and EV/EBITDA of 385.68 reinforce that the stock is not cheap on these supplied metrics. Dividend yield is only 0.56%, and promoter holding is 45.31%. FairStock score of 50/100 is mixed. At ₹1270, near the top of its ₹1073.20-₹1335.00 range, I see a cyclical steel business with improving cash flows but weak ROCE and a demanding price. I would wait for a wider margin of safety.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer