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JSW Group's flagship company, JSW Steel Ltd., has 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 United States and Luxembourg companies Nucor Corp and ArcelorMittal, whose current market cap is $91 million to $3 billion lower than the Indian steelmaker.
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 its volume growth.
As per reports, the company is the best player in India for steel since it has always posted a higher volume growth than GDP. The company also has well-timed project delivery, which benefits its expansion plan.
According to reports, twenty out of 35 analysts tracking the stock currently have a 'buy' rating on the counter. Several factors contribute to this positive outlook. The company’s strong, on-track capacity expansion plan has instilled confidence among analysts. This expansion is expected to drive growth and strengthen the company's market position in the long term.
Additionally, raw material integration has been highlighted as a key factor, enabling the company to optimise its supply chain and improve cost efficiency. Analysts also point to the company’s focus on efficiency and cost optimisation, which should further enhance profitability and competitiveness in the market.
Moreover, the company is shifting towards a higher value-added product mix, which is expected to result in improved margins and overall performance. Finally, there are expectations of an uptick in EBITDA per tonne, further bolstering the company's financial outlook and justifying the positive analyst sentiment.
