JSW Steel Becomes World’s Most Valuable Steelmaker with Rs. 2,59,883 Crore Market Capitalisation
JSW Steel has claimed the title of the world’s most valuable steelmaker, achieving a market capitalisation (mcap) of Rs. 2,59,969 crore (US$ 30.31 billion). This surpasses ArcelorMittal at Rs. 2,32,780 crore (US$ 27.14 billion) and US-based Nucor Corporation at Rs. 2,52,164 crore (US$ 29.4 billion), according to Bloomberg data.
- Despite this mcap lead, ArcelorMittal continues to outperform in revenue, reporting Rs. 5,35,205 crore (US$ 62.4 billion) over the past 12 months.
- In comparison, JSW Steel earned Rs. 1,80,975 crore (US$ 21.1 billion).
- The disparity in valuation is evident in the price-to-earnings (P/E) ratio, with JSW Steel trading at a significantly higher 28.5x versus ArcelorMittal’s 20.3x.
JSW Steel’s Growth and Future Plans
Founded in Karnataka, JSW Steel has grown into India’s largest integrated steel producer, with a total capacity of 35.7 million tonnes per annum (MTPA) across India and the US.
- The company has six MTPA currently under commissioning.
- JSW Steel plans to boost its production capacity to 51.5 MTPA by FY31, with 50 MTPA located in India.
- This growth is driven by infrastructure investments and a growing domestic market.
The company’s stock has risen by 17% since the beginning of the year, driven by increasing steel prices and government interventions aimed at curbing imports.
Global Expansion Strategy
As part of its broader strategy, JSW Steel intends to buy back 220 million shares of its Italian subsidiary, Piombino Steel, valued at Rs. 1,676.45 crore (US$ 195.5 million).
- This move is part of a global operational optimisation strategy, ensuring continued growth and profitability in international markets.