PERFORMANCE

EVALAUTION OF JSW
STEEL LTD

Submitted by
Haira.S
Dept.Communicative English
UPRN:222105115
What is Investment?
Investment is the act of committing financial resources to assets or ventures with
the intention of generating future returns or profits. The core principle of
investment revolves around allocating capital into various types of assets, such as
stocks, bonds, real estate, or businesses, with the expectation that these
investments will appreciate in value or produce income over time. The primary
objectives of investing include capital growth, income generation, and financial
security.
When individuals or institutions invest, they typically aim to achieve a return on
their investment (ROI), which can come in the form of capital appreciation—
where the value of the asset increases over time—or income generation—such as
dividends from stocks, interest from bonds, or rental income from real estate.
Investments are often chosen based on an assessment of risk tolerance, investment
horizon, and financial goals. Risk tolerance refers to the investor's ability and
willingness to endure fluctuations in the value of their investments, while the
investment horizon is the timeframe over which the investor aims to achieve their
financial objectives.
Different investment strategies cater to various goals and risk appetites. For
instance, value investing involves selecting undervalued assets with the
expectation that their true worth will be recognized over time, whereas growth
investing focuses on assets expected to experience above-average growth. Income
investing targets assets that provide regular returns, such as bonds or dividend-
paying stocks, while diversification—spreading investments across different asset
classes—aims to reduce risk by mitigating the impact of any single investment's
poor performance.
The investment process requires thorough research and analysis to evaluate the
potential risks and rewards associated with different opportunities. Investors must
stay informed about market trends, economic conditions, and the performance of
their investments to make well-informed decisions. Regular monitoring and
periodic adjustments to the investment portfolio are crucial to aligning with
changing market dynamics and personal financial goals.
In summary, investment is a fundamental aspect of financial planning, aimed at
growing capital, generating income, and achieving specific financial objectives. It
involves careful selection of assets, strategic planning, and ongoing management
to navigate risks and optimize returns. Through effective investment practices,
individuals and institutions can work towards achieving long-term financial
stability and growth.

Different kinds of investments

 1. Stocks: Shares of ownership in a company. Investors can benefit from price
appreciation and dividends, but they also face the risk of losing money if the
company performs poorly.
2. Bonds: Debt securities issued by governments or corporations. Investors lend
money to the issuer in exchange for periodic interest payments and the return of
the principal amount at maturity. Generally considered lower risk than stocks.
3. Mutual Funds: Investment funds that pool money from many investors to
purchase a diversified portfolio of stocks, bonds, or other securities. Managed by
professional fund managers.
4. Exchange-Traded Funds (ETFs): Similar to mutual funds, but traded on stock
exchanges like individual stocks. They often track an index and offer
diversification with lower fees.
5. Real Estate: Investing in property such as residential, commercial, or industrial
real estate. Returns can come from rental income and property value appreciation.
6. Commodities: Physical goods like gold, oil, or agricultural products. Investors
can buy commodities directly or through futures contracts. Prices can be volatile.
7. Cryptocurrencies: Digital or virtual currencies that use cryptography for
security. Examples include Bitcoin and Ethereum. They are highly volatile and
speculative.
8. Savings Accounts: Bank accounts that earn interest on deposited funds. They
offer low risk but typically lower returns compared to other investment options.
9. Certificates of Deposit (CDs): Time deposits offered by banks with fixed
interest rates and maturities. They are low risk but usually offer lower returns
compared to other investments.
10. Peer-to-Peer Lending: Platforms that connect borrowers with individual
lenders. Investors earn interest on loans they provide, but there is a risk of
borrower default.
11. Hedge Funds: Investment funds that use a range of strategies to earn returns
for their investors, including leveraging and short selling. They often require high
minimum investments and charge significant fees.
12. Private Equity: Investments in private companies (not publicly traded)
through direct ownership or through private equity funds. These investments can
be illiquid but have potential for high returns.
 13. Venture Capital: A type of private equity focused on investing in startups and
early-stage companies with high growth potential. It carries high risk but can offer
significant rewards.
14. Collectibles: Items like art, antiques, or rare coins. These investments can
appreciate in value but are highly subjective and can be illiquid.
15. Annuities: Insurance products that provide regular payments in exchange for
an initial investment. They can offer guaranteed income but often come with high
fees and complex terms.
What do you mean by shares?
Shares, also known as stocks or equities, are units of ownership in a company.
When you buy shares, you are purchasing a portion of the company, which
entitles you to a claim on its assets and earnings. Shares can be traded on stock
exchanges, and their value can fluctuate based on company performance and
market conditions. Investors may earn money through dividends (periodic profit
distributions) and capital gains (selling shares at a higher price than they were
purchased). We can invest in these shares and these investments can be of several
types, they are:
Investment in shares can take various forms:
1. Individual Stocks: Directly purchasing shares of specific companies. This
approach allows for targeted investments but requires careful research and
monitoring of each company’s performance.
2. Mutual Funds: Pooled investment funds that buy shares in a diversified
portfolio of companies. Managed by professional fund managers, mutual funds
offer diversification and professional management but may come with higher
fees.
3. Exchange-Traded Funds (ETFs): Investment funds that trade on stock
exchanges like individual stocks. ETFs typically track specific indices or sectors,
providing diversification with generally lower fees than mutual funds.
4. Index Funds: A type of mutual fund or ETF designed to replicate the
performance of a specific market index, such as the S&P 500. They offer broad
market exposure and low fees.
5. Dividend Stocks: Shares of companies that regularly pay dividends to
shareholders. This type of investment focuses on income generation through
dividend payments in addition to potential capital gains.
6. Growth Stocks: Shares in companies expected to grow at an above-average rate
compared to other companies. These stocks might not pay dividends but offer
potential for significant capital appreciation.
7. Value Stocks: Shares of companies that are considered undervalued based on
fundamental analysis, often with lower price-to-earnings ratios. They may offer
potential for price appreciation and dividends.
8. Blue-Chip Stocks: Shares of large, established, and financially stable
companies with a history of reliable performance and dividend payments. They
are generally considered lower risk compared to smaller companies. 9. Penny
Stocks: Shares of small, often unproven companies traded at low prices. These
can offer high returns but come with high risk and volatility. 10. Sector-Specific
Funds: Mutual funds or ETFs that focus on specific sectors of the economy, such
as technology or healthcare, allowing investors to target particular industries. 11.
Socially Responsible or ESG Funds: Investment funds that focus on companies
meeting environmental, social, and governance (ESG) criteria. These funds appeal
to investors interested in sustainable and ethical investing. Returns and Different
kinds of returns Returns refer to the financial gains or losses realized from an
investment over a specific period. They measure how effectively an investment
has performed and are crucial for evaluating and comparing investments. Returns
can be expressed in both absolute terms (e.g., dollars) and percentages Different
kinds of returns provide various perspectives on how well an investment is
performing. Here’s a breakdown of the key types of returns: 1. Absolute Return -
The total monetary gain or loss from an investment over a specific period. 2.
Capital Gains - Profits earned from selling an asset at a higher price than its
purchase price. 3. Dividends - Payments made to shareholders from a company’s
earnings. These are typically paid quarterly or annually. 4. Interest Income -
Earnings from fixed-income investments, such as bonds or savings accounts,
where interest is paid periodically. 5. Total Return - The overall return on an
investment, which includes both capital gains and any income received (dividends
or interest). It provides a comprehensive view of an investment’s performance. 6.
Annualized Return - The average annual return over a specified period, adjusted
for compounding. It helps compare investments with different durations. For
example, if an investment grew by 20% over two years, the annualized return
would reflect the compounded annual growth rate. 7. Real Return - The return
adjusted for inflation, which reflects the actual increase in purchasing power. For
instance, if an investment returns 8% but inflation is 3%, the real return is
approximately 5%. 8. Nominal Return - The return on an investment before
adjusting for inflation. It is the raw return percentage you see without considering
the effect of inflation on purchasing power. 9. Risk-Adjusted Return - The return
on an investment considering the level of risk taken. Common metrics include the
 Sharpe ratio, which measures returns per unit of risk, and the Sortino ratio, which
measures returns relative to downside risk

JSW STEEL AT A GLANCE

The flagship company of the over $11 billion JSW Group, JSW Steel is testament to decades of
experience and a dynamic culture that have culminated in the company becoming the leading
manufacturer of value added and high-end steel in India.

Sustainability powers JSW Steel’s business vision. We realize that only by creating a sustainable
future can we pave the way for our goal of a self-reliant India. This belief has always stood us in
good stead. With a conviction in our values, we have grown from a single steel plant in 1982 to
the large operations that define us today.
JSW Steel is a pioneer in the use of innovative technology that keeps us ahead of the
competition. Not only do we offer the widest product portfolio in India, we also further leverage
our capability to customize offerings to match customer expectations.

Our strategy of always staying on the leading edge of technical advancement has led to
partnerships with global sector leaders such as JFE Steel, Marubeni Itochu Steel, Praxair and
Severfield Rowen Plc. This technological edge has helped our plants rank among the lowest-cost
steel producers in the world and differentiated us from our competitors.

The strong focus on innovation and R&D has led to JSW Steel being recognised worldwide as a
purveyor of high-end, value-added steel. Nearly 40 percent of our products today are high value
steels; we intend to take this figure up to 50 percent. Nearly one fifth of our products are
exported and we are India’s largest exporter of steel with a presence in over 100 countries and 5
continents
Our strategic approach to growth has driven the Company’s forward and backward integration
initiatives. Our steel plants in Karnataka, Tamil Nadu and Maharashtra have a combined
installed capacity of 18 million tonnes per annum (MTPA). With the objective of touching 40
million tonnes in the next decade, we are expanding capacities at our existing sites and setting up
plants in new locations.
At JSW, sustainability is the touchstone on which we have evolved our operational processes.
Our systems for governance, manufacturing, supply chain management, human resource
management, community engagement, mitigation of our carbon footprint and customer
engagement, among others, are benchmarked against global best-in-class standards.
Our deeply held beliefs in doing business the sustainable way have led to strong partnerships
among the communities where we operate. The canopy of our CSR (corporate social
responsibility) initiative covers micro-level engagements as well as macro development
programs that leave a measurable positive impact in every location where we have a presence.

History

The JSW Group’s foray into steel manufacturing began in 1982, when it set up the Jindal Iron
and Steel Company with its first steel plant at Vasind near Mumbai. The next two decades saw
significant expansion and several acquisitions, following the merger of Jindal Iron and Steel Co
(JISCO) and Jindal Vijayanagar Steel Ltd (JVSL) in 2005. Today JSW Steel has plants in six
locations in India — Vijayanagar in Karnataka, Salem in Tamil Nadu, and Tarapur, Vasind,
Kalmeshwar and Dolvi in Maharashtra.
Our global operations include a plate and pipe mill in the US. In order to securitise resources, the
company has acquired mining assets in Chile, USA and Mozambique.

Products

Flat Products
• Hot Rolled (HR)
• Cold Rolled (CR)
• Color Coated Products
o JSW Pragati
o JSW Colouron
o JSW Colouron+
• Galvanised
o JSW Vishwas
o GALVECO
• Galvalume
o JSW Vishwas+
o GALVOS

Long Products
• TMT Bars
o Neosteel Bars
• Wire Rods
• Special Alloy Steel

JSW STEEL FACILITIES

JSW Steel has grown from a single manufacturing unit in early ‘80s to become
India’s leading integrated steel company with a steel-making capacity of 28
MTPA in India & the USA, including capacities under joint control & new
capacity to be commissioned at Dolvi during this year. Its roadmap for the next
phase of growth includes a target of achieving 37.5 MTPA steel capacity by
FY25. The Company’s manufacturing unit in Vijayanagar, Karnataka is the
largest single location steel-producing facility in India with a capacity of 12
MTPA. JSW Steel has always been at the forefront of research and innovation. It
has a strategic collaboration with global leader JFE Steel of Japan, enabling JSW
to access new and state-of-the-art technologies to produce & offer high-value
special steel products to its customers. These products are extensively used
across industries and applications including construction, infrastructure,
automobile, electrical applications, appliances, etc. JSW Steel is widely
recognized for its excellence in business. Some of its key honours and awards
include World Steel Association’s Steel Sustainability Champion (consecutively
from 2019 to 2021), Leadership Band Rating (A-) in CDP (2020), Deming Prize
for TQM for its facilities at Vijayanagar (2018), and Salem (2019), DJSI
RobecoSAM Sustainability Industry Mover Award (2018) among others. JSW
Steel is the only Indian company to be ranked among the top 10 global steel
producers by World Steel Dynamics for 10 consecutive years. As a responsible
corporate citizen, JSW Steel’s carbon reduction goals are aligned to India’s
Climate Change commitments under the Paris Accord.

COMPANY PROFILE
SW Foundation is the social development arm of the US$ 24 billion JSW Group,
one of India’s leading business houses. It has a long track record and a rich legacy
of empowering rural communities to enrich their lives since the last three decades.
JSW Foundation’s focus areas are Education; Health and Nutrition; Skill
Development; Livelihoods; Water, Environment and Sanitation; Waste
Management; Sports Promotion; and Art, Culture and Heritage. Through a strong
field presence, it operates across 17 states and 38 districts around JSW’s plant &
port locations. JSW Foundation also reaches out to communities beyond these
locations to contribute towards India’s social development in a meaningful way.
 JSW Foundation’s holistic life-cycle based interventions have positively impacted
more than 2 million individuals across India.
MARKET CAPTILISATION
As of September 2024 JSW Steel has a market cap of ₹2.293 Trillion.

DIVIDEND HISTORY
JSW Steel (stock symbol: JSWSTEEL.NS) has a dividend yield of 0.42% as of
September 20, 20231. The average dividend yield for the last 5 years is 2.63%1.
JSW Steel has made a total of 24 dividend payments 2. The sum of all dividends
(adjusted for stock splits) is $1.002.

Recent Dividend Payments

• 2023: ₹7.30 per share
• 2022: ₹3.40 per share
• 2021: ₹6.50 per share
• 2020: ₹2.00 per share
• 2019: ₹4.10 per share

Dividend Policy

JSW Steel follows a balanced dividend policy, aiming to reward shareholders while retaining
sufficient earnings for reinvestment in business operations and future growth. The company
typically distributes a portion of its profits as dividends, ensuring that it maintains adequate
reserves for expansion and operational needs12.

Reinvestment Focus

JSW Steel places a strong emphasis on reinvestment to enhance its production capabilities and
maintain its competitive edge. The company has consistently invested in modernizing its
facilities, expanding capacity, and adopting new technologies. This reinvestment strategy is
crucial for sustaining long-term growth and improving financial performance.

Financial Performance

JSW Steel has shown robust financial performance over the years. The company’s revenue and
profit margins have generally been strong, supported by its strategic investments and efficient
operations. The focus on reinvestment has helped JSW Steel to maintain a competitive position
in the steel industry

SALES NET PROFIT

JSW Steel is expected to log a net profit of Rs 1,661 crore in Q4FY24, as per Bloomberg
consensus estimate

JSW Q4 Results: Here are the key highlights

• Net Profit: ₹1,322 crore in Q4, ₹8,973 crore in FY24
• Revenue from operations: ₹46,269 crore in Q4, ₹1,75,006 crore in FY24
• Operating EBITDA: ₹6,124 crore in Q4, ₹28,236 crore in FY24
• Dividend of ₹7.30 per share

SHARE HOLDING PATTERN

MARKET PRICE CHART

OVERALL PERFORMANCE ANALYSIS OF THE COMPANY

JSW Steel Ltd. has established itself as a major player in the steel industry
through robust financial growth, strategic capacity expansion, and operational
efficiency. The company reported substantial revenues, with ₹1,91,800 crore in
FY 2023, although net profits have fluctuated due to market conditions, with a
drop to ₹3,588 crore in the same year.
JSW Steel's competitive advantage lies in its cost management, strong domestic
market share, and growing international footprint. The company is also focusing
on sustainability, aiming to reduce its carbon footprint through investments in
green technologies.

However, challenges such as global market volatility and high debt levels due to
its expansion strategy pose risks. Despite these, JSW Steel remains well-
positioned for future growth, supported by continued demand, innovation, and its
ability to adapt to industry changes.