metals

JSW Steel

JSWSTEEL · Nifty 50

1,287.2

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 14.2 (44%ile of 5Y range 4-77). Trading near median.
Sector Positionmetals sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score90/100 (STRONG). 1 positive flags, 3 concerns.
Historical Context112 similar technical setups. Average outcome: -10.0% decline. 0% positive.
Revenue TrendRevenue growing at 14.2% YoY. Moderate revenue growth — 14.2% YoY

Fundamental

90/100

STRONG

Trust

95/100

Verification

Coverage

89/100

HIGH

Quick Take

JSW Steel scores 90/100 on fundamentals (strong). JSW Steel: PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 90/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 22.2% broken into three drivers. Each shows how efficiently the company generates returns.

ROE22.2%=
12.2%Net Margin
×
0.7xTurnover
×
2.7xLeverage

ROE of 22.19% is strong margin-driven and stable. Net margin of 12.2% × asset turnover of 0.67x × leverage of 2.7x.

What This Means

Net margin of 12.2% means the company keeps ₹12.2 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.67x means the company efficiently uses its assets to generate revenue. Leverage of 2.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

42.4%

Operating

20.6%

Net

12.2%

improving

Gross margin 42.4% → operating margin 20.6% → net margin 12.2%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

ADEQUATE

Cash flow covers net income 1.1x — earnings are ADEQUATE quality. Cash conversion is reasonable.

Debt Sustainability

COMFORTABLE

Interest covered 4.3x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.5x is moderate.

Free Cash Flow

STRONG

FCF margin at 5.8% — moderate. Generating cash after investments.

Peer Comparison

JSW Steel is compared against 10 peers in the metals sector.

Key Watchpoints

🟢

Breaks above ₹1352 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1223 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 14.2

Valuation normalization

🟢

Metals sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition

Risk Flags

🔴 1 Critical⚠️ 2 Warning1 Positive4 total flags
🔴Unusual items are 78% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹17359K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Audit risk elevated: 9/10
Governance

Potential accounting concerns. Cross-check with earnings quality flags.

High promoter holding: 63%
Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
14.2HIGH
P/B Ratio
3.2HIGH
ROE
27.3%HIGH
Market Cap
₹31672169.9L CrHIGH
From 52W High
97% of high
Promoter Holding
63.4%MODERATE
Institutional
17.1%
Sector Peers
10
JSW Steel Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight