Sajjan Jindal-led JSW Steel has achieved a significant milestone by becoming the world’s highest-valued steelmaker, with its market capitalisation exceeding $30 billion on Tuesday.
The impressive performance of JSW Steel’s stocks is attributed to a broader upward trend among Indian steel manufacturers, following recent recommendations by a government entity to safeguard domestic producers from increased low-cost steel imports.
Shares of JSW Steel, India’s largest steel manufacturer by capacity, reached a peak of Rs 1,074.15 on the BSE on Tuesday. The company’s stock value has increased by approximately 11% over a month and more than 4% within a week, according to an ET report.
The Tuesday surge positioned JSW Steel ahead of US-based Nucor Corp, which held a market capitalisation of $29.92 billion. Other prominent steel producers, including Europe’s ArcelorMittal, Japan’s Nippon Steel Corp, and China’s Baoshan Iron, maintain market capitalisations between $21 billion and $27 billion.
Investec analyst Ritesh Shah said, “JSW Steel is our preferred ferrous proxy,” further noting, “The company has a proven growth and EBITDA (earnings before interest, tax, depreciation, and amortisation) trajectory.”
In comparison to its Indian counterparts, JSW Steel maintains superior valuation metrics. Tata Steel, the second most valuable steel enterprise in India, has a market capitalisation of approximately $23 billion. Jindal Steel is valued at $10.81 billion, whilst government-operated SAIL stands at $5.5 billion. During the past week, Tata Steel and SAIL witnessed gains of 1-5%, while Jindal Steel & Power experienced a decline.
