JSW Steel Share Price Target 2022, 2023, 2024, 2025, and 2030: Hi! I hope everyone is fine there and achieving some highs in their respective field.
In this article, we provide you with deep insights into India’s second-largest private-sector Steel Company, JSW Steel Limited. Also, we give hidden knowledge of this company. We will provide you right knowledge about whether the investment in this company’s stock is a thing of profit or loss.
Apart from all of the above, we will try to predict the share price target for JSW Steel Ltd. in the upcoming years. So, stay tuned with us.
The flagship company of JSW Group, JSW Steel is one of India’s leading integrated steel manufacturers. On March 15, 1994, the company was founded by Mr. Sajjan Jindal. JSW Steel’s headquarter is located in Mumbai, Maharashtra.
Mr. Sajjan Jindal is the Chairman & Managing Director of the company.
Business Model of JSW Steel
JSW Steel is an integrated manufacturer of a diverse range of steel products. The company’s manufacturing facilities are located at Vijaynagar Works in Karnataka, Dolvi Works in Maharashtra and Salem works in Tamil Nadu.
Products of the company
- Hot Rolled (HR)
- Cold Rolled (CR)
- Color Coated Products
- Neosteel TMT Bars
- Wire Rods
- Special Steel
The company is India’s leading integrated steel manufacturer with a capacity of 18 MTPA. It is one of the fastest-growing companies in India with a footprint in over 100 countries.
JSW Steel continues to enhance its capabilities to meet the rapidly changing global market needs. To stay on the leading edge of technical advancement, JSW has entered into technological collaboration with JFE Steel Corp, Japan to manufacture high-strength and advanced high-strength steel for the automobile sector.
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The current stock price of the company is in the range of ₹540-₹560. Market capitalization stood at ₹ 1,31,339.67 Cr. The current P/E ratio of the company is approx 6.81 and the sector P/E is 12.01 which means that the stock is undervalued at the time.
The financial statements of the company are very strong and the company is doing well in the last couple of years.
JSW Steel is positioned to deliver the highest earnings growth amongst its peers over FY21 – FY24 with its counter-cyclical investment approach. JSW Steel Share Price Target 2022 will be as follows:
|JSW Steel Share Price Target 2022|
No doubt JSW Steel is a good company but the company needs to expand its business with extra capacity.
The company is one of the largest steel makers in the world. The company’s revenue comes from both domestic and international markets.
|JSW Steel Share Price Target 2023|
To post good results in the future the company needs to increase its revenue growth. The revenue growth of the company is below par in the last 3 years.
The stock is currently undervalued and can be bought for the long term.
|JSW Steel Share Price Target 2024|
The company is the lowest-cost producer of steel in the world but the company is having heavy debt burden of ₹ 49,000 Cr. The management needs to handle this debt in a systematic manner.
JSW Steel Ltd, with its steelmaking capacity of 18 MnTPA in the domestic market, has a considerable presence in the Indian steel industry. The company has a leading market share in Southern and Western India.
|JSW Steel Share Price Target 2025|
JSWSL earns its revenues from a well-diversified portfolio of steel products.
Owing to its high dependence on imports for its coking coal as well as foreign currency-denominated debt, the company remains exposed to forex risks.
Which are only partially mitigated by way of its hedging policy, covering its revenue account fully on a gross basis for a 6-months forward and next year’s debt service obligations.
|JSW Steel Share Price Target 2030|
JSW Steel Strengths
Financial Strengths :
- The company has shown a good profit growth of 21.97% over the past 3 years.
- The company has been maintaining healthy ROE of 20.08% over the past 3 years.
- RoCE is 16.89%.
- JSW Steel has been maintaining effective average operating margins of 20.30% in the last 5 years.
- The company’s PEG ratio is just 0.15.
- The company has an efficient Cash Conversion Cycle of 2.15 days.
- The company has good cash flow management; the CFO/PAT stands at 2.27.
- The company has a strong degree of Operating leverage, Average Operating leverage stands at 4.83.
- FCFF Per share is 33.37
- Reserves of the company continue increasing.
Other Strengths :
- The company is India’s third largest steelmaker with a combined capacity of 18+ MTPA and hence enjoys economies of scale.
- High growth prospects with a consistently increasing revenue.
- One of the lowest-cost steel producers in the world.
- The first steel producer in the world to use Corex Technology for producing hot metals.
- Operates in both upstream as well as downstream sectors.
- Increasing demand from all sectors in India & Global world.
- Mergers & acquisitions to keep a steady supply of raw materials.
- Product development by investing more in Research & Development.
JSW Steel Weaknesses
- The company has shown poor revenue growth of 2.09% over the past 3 years.
- The quick ratio and current ratio are both under 1.
- A high debt burden of ₹ 49,000 Cr. The debt to equity ratio is 1.05.
- 15.83% of promoters’ shares are pledged.
Other Weaknesses and threats :
- Limited portfolio diversification compared to industry leaders.
- Less number of mines.
- Low capacity utilization.
- The cyclical nature of the steel industry needs to have an efficient production process.
- Competition from existing players and foreign players.
- Government and environment regulations.
- Changes in the prices of raw materials and end products.
Annual Reports of the company –
Competitors of JSW Steel
Tata Steel, Hindalco, NMDC, Jindal Steel, and SAIL are some major competitors of the company.
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JSW Steel Stock Price Target 2022, 2023, 2024, 2025, 2030
|JSW Steel Share Price Targets|
|First Target (2022)||₹600|
|First Target (2023)||₹650|
|First Target (2024)||₹720|
|First Target (2025)||₹810|
|First Target (2030)||₹1250|
Recently, in a bid to curb inflation the government announced export duties on most steel products, along with an excise duty cut for petrol and diesel. This is likely to divert more supply toward the domestic market.
But this problem is looking temporary and may be a good opportunity to grab this quality stock.
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Disclaimer – In this article we have just evaluated the company also we are not a SEBI registered advisor. We have not provided any investment advice on this stock. Before doing any investment please research yourself or take the advice of your financial advisor.
Who is the Chairman of the JSW Steel?
Mr. Sajjan Jindal is the Chairman and Managing Director of the company.
Is JSW Steel a debt-free company?
The company has a debt burden of ₹49,000 cr.
Will JSW Steel go up?
The company is a fundamentally strong company that has a global presence.