Summary:
JSW Steel has emerged as the world’s most valuable steelmaker, attaining a market capitalisation (mcap) of Rs. 2,59,969 crore (US$ 30.31 billion). This achievement places it ahead of ArcelorMittal, with an mcap of Rs. 2,32,780 crore (US$ 27.14 billion) and Nucor Corporation from the US, valued at Rs. 2,52,164 crore (US$ 29.4 billion), as per Bloomberg data. Although JSW Steel leads in market value, ArcelorMittal retains a stronger revenue position, recording Rs. 5,35,205 crore (US$ 62.4 billion) in the past 12 months, substantially surpassing JSW Steel’s Rs. 1,80,975 crore (US$ 21.1 billion). This contrast is evident in the price-to-earnings (P/E) ratio, where JSW Steel’s 28.5x valuation notably exceeds ArcelorMittal’s 20.3x.
Founded in Karnataka, JSW Steel stands as India’s largest integrated steel producer, with a combined production capacity of 35.7 million tonnes per annum (MTPA) across India and the US. An additional six MTPA capacity is under commissioning. By FY31, the company targets an increase to 51.5 MTPA, with 50 MTPA expected from its Indian operations, supported by heightened infrastructure investments and a robust domestic market. The company's stock has climbed 17% since the beginning of the year, driven by surging steel prices and government measures to limit imports. In line with its global optimisation strategy, JSW Steel plans to repurchase 220 million shares of its Italian subsidiary, Piombino Steel, for Rs. 1,676.45 crore (US$ 195.5 million). This strategic move is intended to enhance operational efficiency and strengthen its global presence.
Source: IBEF
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