From the perspective of the Indian stock market, the metal sector is always on the watchlists of every investor and trader out there, big or small. In a developing economy like India, the steel sector plays a massive role, and it is extremely obvious that people will be bullish, and attracted to these stocks if nothing else. JSW is a company that is well-established in this sector, and JSW steel share price is something that is searched by a large number of investors and traders daily.
Here, we will be taking a look at the top 3 metal sector stocks that have grown to become favourites of the Indian stock market. So, here goes.
JSW Steel Limited.
When it comes to multinational steel manufacturing companies, JSW steel is one of the largest ones out there. A part of the JSW group, the company is currently the second-largest steel manufacturer in the private sector, which is a significant achievement in itself.
Before addressing the aspect of JSW steel share price, it is important to look at the company’s history. One can trace the roots of the company back to 1982 when the Jindal group decided to purchase a mini steel mill from Piramal steel limited. This plant was located in Tarapur, MH, and was renamed to Jindal Iron and Steel Company, often abbreviated as JISCO. The company grew pretty rapidly from that point on and after a series of mergers and acquisitions, JSW steel currently boasts an output of 28.5 MTPA, as of October 2022.
Coming to the share side of things, JSW steel share price closed at 673.95 INR on 31st October 2022, and has shown multiple upsides in the years gone by. The company is headed by Mr. Sajjan Jindal, a seasoned industrialist himself, and the share of the company is a part of the Nifty 50 index as well. It was incorporated in 1994 and is a large-cap company with a market cap of 165,265.36 crores INR.
The revenue of the company stood at 41,778 crores INR for the quarter that ended September 2022, while the company earned a profit of 20,665 crores INR, as of 2022. If you want to know the company’s net worth, that stood at 67,297 crores INR for 2022, and it portrayed a 5-year CAGR of 21.4%.
Coming to the holding patterns, JSW steel shares consist of 45.19% promoter holding and a retail holding of 34.86%. Foreign institutional holding stands at 10.75%, while the percentage falls to 7.43% when it comes to domestic institutional investors. Mutual funds possess 1.77% of the company’s stocks. The company’s ROE stands at 30.70% for FY 2022 and has a P/E ratio of 10.67 for the same time period.
The share possesses potential upsides, and there is news that may positively affect JSW steel share price. For one, they are upgrading their Texas plant, which will help boost revenues and drive growth. A global output cut of steel might positively affect the share prices as well.
The company is known to pay out dividends at certain intervals, with the latest one being announced on 27th May 2022, and that too at a rate of 1735%. If you are looking to invest in JSW steel, it is advisable that you study the fundamental ratios before taking a call.
Now that we are aware of JSW steel, let us move on to the penultimate company on this list, Tata Steel.
Tata Steel Limited.
Also referred to as the grand-daddy of the Indian steel industry, Tata Steel Limited is one of the oldest steel manufacturing powerhouses in all of Asia and is one of the largest manufacturers of steel in the world as well. Founded in 1907, TISCO, and then Tata Steel Limited continue to play a critical role in the Indian growth story that we see and love.
After a series of mergers and acquisitions, Tata Steel Limited is a major player in the Indian steel industry. Now, let us take a look at the tata steel share price side of things.
Tata Steel Limited is a large-cap company that possesses a market cap of 122,824.85 crore INR, and the tata steel share price closed at 101.55 INR on 31st October 2022. The company is headed by Mr. T Narendran as the MD/CEO and reported annual revenue of 2,43,959 crore INR for 2022, a profit of 40,154 crore INR for 2022, and its net worth stands at 1,14,443 crore INR for 2022. The CAGR of the company stood at 15.7% for a 5-year period.
When coming to the holding patterns, promoters held 33.92% of the total shares, among which 1.55% is pledged. FII holdings stood at 21.95%, and DII holdings stood at 18.08%. MFs held 7.31%, while retail investor holding stood at 48.00%
The P/E ratio of Tata Steel Limited stands at 3.17, and an ROE of 42.56%. If you are looking to invest in the company, you can expect some significant upsides and international factors that positively affect the share prices of JSW steel, which would significantly boost tata steel share price as well.
Besides these, there are a few other significant steel sector stocks that are available on the market, and a significant among them is SAIL or Steel Authority of India Limited.
Founded in 1973, SAIL is one of the largest steel manufacturing companies to be operating in the public sector. It is a large-cap company as well and possesses a market cap of 33,064.85 crore INR. SAIL is a part of major indices like the Nifty 200, Nifty 500, etc., and is headed by Soma Mondal as the chairman,
The shareholding pattern of SAIL comprises 65% promoter holding, FII holding of 4.22%, DII holding of 8.79%, MF holding of 2.59%, and retail investor holding stands at 21.99%, as of June 2022.
If you are wondering about the profitability and earnings of the company, SAIL posted revenue of 1,03,477 crores INR, a profit of 12,243 crores INR, and possesses a net worth of 54,212 crores INR, as of 2022. The ROE offered by SAIL shares stands at 24.58%, and the P/E stands at a level of 3.55.
SAIL recorded a 47.7% CAGR over the last 5 years, and the stock offers a significant upside as well, thanks to the deals and the MoUs that the company has entered into to develop several infrastructure projects. If you want to invest in the shares of this company, do check for the ratios and other additional information that is available in the public domain.
Investing in the steel sector can prove to be a really good bet for the long term. If you are looking to invest in the aforementioned shares, you should do your proper research, like the present JSW steel share price, and make informed decisions.