Sajjan Jindal-led JSW Steel has become the most valuable steel company in the world by market capitalisation, toppling global giants such as Nucor, ArcelorMittal and Nippon Steel. A strong rally in metal stocks amidst the bull charge in the broader market boosted the company’s fortunes.
The company’s valuation reached ₹259,670 crore or about $30.5 billion (see chart) at the close of trading on Tuesday with the stock ending the day at ₹1,061.85, up ₹0.75, or 0.07 per cent, after reaching the life high of ₹1,074.15.
The JSW Steel stock has given a return of 29.26 per cent in one year compared with a 7.65 per cent rise in the benchmark Sensex 30. From year to date, the stock has risen 17.2 per cent, outperforming broader indices that inched up 0.6 per cent.
Billionaire Sajjan Jindal, whose business empire spans across steel, power, automobile, cement, ports and paints, and his family hold a 44.85 per cent stake in the company as promoters. The other major public shareholder is JFE Steel Corp of Japan, which holds a 15 per cent stake in the company.
The only other Indian company which is part of the top 10 list by market cap is Tata Steel, with a market cap of $22.9 billion. While JSW has overtaken others by market cap, it trails ArcelorMittal and Chinese steel makers such as Baosteel and Anshan in capacity.
Indian steel stocks have been shining in the last few trading sessions after the Union commerce ministry proposed a 12 per cent safeguard duty against imports of hot rolled and cold rolled coils, raising prospects of up to ₹5,000 a tonne increase in steel prices in the domestic market.
Any price hike would straight add to the bottomline of the companies.
The safeguard duty is yet to be put in place by a notification by the ministry of finance amidst a global trade war unleashed by the US administration. The levy will be a positive for flat steel makers such as JSW, the Jindal promoted company that has been on a strong growth path ever since it bounced back from a debt debacle about quarter of a century ago.
From a mere 1 million tonne capacity in Vijaynagar, Karnataka, the company now boasts of 35.7 mt capacity, spread out in multiple locations. It has mobilised work to take the capacity to 43.5 mt by the end of FY27, without stretching the balance sheet.
A source in the company described the milestone today as a story of consistent growth and robust financial performance amid strong competitive pressure.
A jubilant Parth Jindal, son of Sajjan Jindal, tweeted, “Extremely proud to share that JSW Steel has become the largest steel company by market capitalisation — so proud of the hard work by papa Sajjan Jindal, ma Sangita Jindal and the entire JSW Steel Group family — we are humbled and will not stop at this.”
Buyback
Piombino Steel Ltd, a subsidiary of the company has approved a buyback of 22.26 crore shares held by JSW Steel at ₹75.3 per share for a total consideration of ₹1,676.45 crore. The move is expected to strengthen the balance sheet of JSW Steel.