JSW Ispat Ltd. is a well-established steel manufacturing company in India. It is one of the largest steel producers in India, with a production capacity of over 12 million tonnes per annum. The company has a strong focus on sustainability and is committed to reducing its environmental impact. JSW Ispat Ltd. has been recognized for its sustainability efforts by a number of organizations, including the World Steel Association and the Indian Institute of Metals. In this article, we will take a closer look at JSW Ispat Ltd. and its financial performance. We will also discuss the company’s growth opportunities and the risks it faces.
JSW Ispat Ltd Latest News Updates
JSW Ispat Ltd and JSW steel Ltd merger’s record date
The record date for the shareholders of Transferor Company 2 (JISPL) is August 10, 2023. This is the date on which the Transferee Company (JSW Steel Limited) will determine the eligible shareholders of Transferor Company 2 to whom securities of the Transferee Company will be allotted in terms of the Scheme.
So, if you are a shareholder of JISL, you must hold your shares as of August 10, 2023, in order to be eligible for the share swap.
JSW Ispat Ltd and JSW steel Ltd merger details.
The Transferor Company in this case is JSW Ispat Special Products Limited (JISPL). The Transferee Company is JSW Steel Limited.
The share swap ratio is 1:21. This means that for every 21 fully paid-up equity shares of INR 10 (Indian Rupees Ten) each of the Transferor Company, the shareholders will be issued and allotted 1 (one) fully paid-up equity share(s) of INR 1 (Indian Rupee One) each of the Transferee Company.
In other words, if you are a shareholder of JISL and you hold 21 shares of JISL, you will be issued and allotted 1 share of JSW Steel.
The fractional entitlement is the number of shares that cannot be exactly divided by the share swap ratio. In this case, if you hold 22 shares of JISL, you will have a fractional entitlement of 1 share. This will be consolidated and allotted to the Trustee 2, who will sell the shares in the market and distribute the net sale proceeds to the relevant security holders in proportion to their respective fractional entitlements.
Overview
The company’s main markets are India, China, and the United States. JSW Ispat Limited exports its products to over 50 countries worldwide.
The company has a strong focus on sustainability, and is committed to reducing its environmental impact. JSW Ispat Limited has been recognized for its sustainability efforts by a number of organizations, including the World Steel Association and the Indian Institute of Metals.
In August 2018, JSW Ispat Limited acquired Monnet Ispat & Energy Limited, a steel-making company with a production capacity of 1.5 million tonnes per annum. The acquisition has made JSW Ispat Limited the second-largest steel producer in India.
JSW Ispat Limited is a well-managed company with a strong track record of growth. The company is well-positioned to continue to grow in the future, given the strong demand for steel in India and other emerging markets.
Here are some of the company’s key achievements:
- Ranked 5th among major steel companies in India by Business World in 2008.
- Acquired Monnet Ispat & Energy Limited in August 2018.
- Has a strong focus on sustainability and has been recognized for its efforts by a number of organizations.
- Is the second-largest steel producer in India.
Financial analysis of JSW Ispat for the last five years:
- JSW Ispat Ltd results: JSW Ispat’s revenue has increased by an average of 10% per year over the last five years. In FY23, the company’s revenue was INR 1,636,460 million, up from INR 1,438,290 million in FY18.
- Profit: JSW Ispat’s profit has also increased by an average of 10% per year over the last five years. In FY23, the company’s profit was INR 41,440 million, up from INR 206,650 million in FY18.
- Net profit margin: JSW Ispat’s net profit margin has been relatively stable over the last five years, averaging around 25%. In FY23, the company’s net profit margin was 25%.
- Return on equity: JSW Ispat’s return on equity has also been relatively stable over the last five years, averaging around 15%. In FY23, the company’s return on equity was 15%.
Jsw Ispat Vs Tata Steel Vs ArcelorMittal
| Metric | JSW Ispat | Tata Steel | ArcelorMittal |
| Revenue (FY23) | INR 1,636,460 million | INR 2,06,680 million | INR 70,217 million |
| Profit (FY23) | INR 41,440 million | INR 10,210 million | INR 15,470 million |
| Net profit margin (FY23) | 25% | 5% | 22% |
| Return on equity (FY23) | 15% | 6% | 12% |
We can see, JSW Ispat’s financial performance is comparable to its peers. The company has a strong revenue growth and profit growth, and its net profit margin and return on equity are in line with the industry average.
Reasons why you might want to consider investing in JSW Ispat.
- Strong financial performance: JSW Ispat has been consistently profitable in recent years, with net profits growing at an average annual rate of 15% over the past five years. The company’s strong financial performance is supported by its low-cost production facilities, which are located in India, where labor and energy costs are relatively low.
- Growth opportunities: The global steel market is expected to grow at a compound annual growth rate (CAGR) of 2.5% over the next five years, driven by strong demand from emerging markets such as China and India. JSW Ispat is well-positioned to capitalize on this growth, as it has a strong presence in these markets.
- Dividend yield: JSW Ispat has a dividend yield of 4.5%, which is higher than the average dividend yield for the Indian steel sector. This makes JSW Ispat an attractive investment for investors who are looking for income.
Reasons why you might not want to invest in JSW Ispat:
- High debt levels. JSW Ispat has a high debt-to-equity ratio of 1.5, which means that it has more debt than it does equity. This could make it more difficult for the company to repay its debt if its profits decline.
- Low profitability. JSW Ispat’s operating profit margin has been declining in recent years. In the fiscal year 2022, the company’s operating profit margin was 10.5%, down from 12.1% in the fiscal year 2021. This decline in profitability could make it more difficult for the company to generate income for its shareholders.
- Competition from Chinese steelmakers. Chinese steelmakers are able to produce steel at a lower cost than JSW Ispat. This could make it difficult for JSW Ispat to compete in the global steel market.
- Political risks. JSW Ispat is a large steel producer in India. The Indian government has a history of intervening in the steel industry, which could pose a risk to JSW Ispat’s business.
JSW Ispat Ltd Stock Breakout: Bullish Sentiment and Potential for Further Gains
The share price of JSW Ispat Ltd. (NSE: JSWSPL) has broken out from its sideways consolidation of more than a year, with considerably higher volumes. This is a bullish sign, as it suggests that there is strong buying interest in the stock.
The stock has been trading in a range of 12 points (Rs. 21-33) over the past year. This range-bound trading can be seen as a period of accumulation, as buyers were gradually buying shares while the price was low.
The stock is now trading above its key moving averages, which is another bullish sign. The 20-week and 200-week Simple Moving Averages (SMA) are currently at Rs. 30 and Rs. 28, respectively. The stock is trading above both of these averages, which suggests that the medium-term trend is positive.
The Relative Strength Index (RSI) is also above 50, which is a bullish indicator. The RSI measures the strength of buying and selling pressure. A reading above 50 indicates that buying pressure is stronger than selling pressure.
The immediate resistance level for the stock is at Rs. 38-39. If the stock breaks above this resistance level and sustains trading above Rs. 40, it could trigger a significant rally, propelling the stock towards the price target range of Rs. 62-64.
However, it is important to exercise caution and consider the potential downside risks as well. If the stock weakens and falls below its immediate support level of Rs. 28, there is a possibility of a retracement back towards its major support zone of Rs. 19-20. It is important for traders to closely monitor these support levels in order to effectively manage their risk.
Overall, the breakout of JSW Ispat Ltd. stock from its sideways consolidation is a bullish sign. However, traders should be aware of the potential downside risks and manage their risk accordingly.
Also Read – Marine Electricals (India) Limited: A Sound Financial Investment for Small Investor
Conclusion
JSW Ispat Ltd. is a well-established steel manufacturing company in India with a strong track record of financial performance. The company has a number of growth opportunities, including the expanding global steel market and its strong presence in emerging markets. However, there are also some risks to consider, such as the company’s high debt levels and competition from Chinese steelmakers.
Overall, JSW Ispat Ltd. is a high-risk, high-reward investment. Investors should carefully consider the risks and rewards before investing in the company.
https://www.aionjsw.in/investors/annual-report
https://chartink.com/stocks/jswispl.html
Disclaimer :
CryptoPunditz.com is not a registered investment, legal, or tax advisor or a broker/dealer. All investment/financial opinions expressed by CryptoPunditz.com are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up-to-date, occasionally unintended errors and misprints may occur.
1 thought on “JSW Ispat Ltd: Good Stock under 100 Rupees you can buy in 2023”