JSW Steel Becomes the World’s Most Valuable Steelmaker by Market Capitalisation

A New Global Leader in Steel Market Capitalisation

JSW Steel has achieved a significant milestone by becoming the world’s most valuable steelmaker based on market capitalisation. 

According to a report, the company reached a market capitalisation of ₹2,59,969 crore (US$ 30.31 billion), overtaking global players such as ArcelorMittal and US-based Nucor Corporation.

ArcelorMittal, previously at the top, currently holds a market capitalisation of ₹2,32,780 crore (US$ 27.14 billion), while Nucor follows with ₹2,52,164 crore (US$ 29.4 billion). Although JSW Steel leads in valuation, ArcelorMittal still outpaces its peers in terms of revenue.

Revenue Versus Valuation: A Contrasting Picture

While JSW Steel has taken the lead in market value, its revenue for the past twelve months stood at ₹1,80,975 crore (US$ 21.1 billion). In contrast, ArcelorMittal reported a much higher revenue of ₹5,35,205 crore (US$ 62.4 billion). This divergence is echoed in the companies’ price-to-earnings (P/E) ratios.

JSW Steel currently trades at a P/E ratio of 28.5x, significantly higher than ArcelorMittal’s 20.3x. This valuation suggests that the market anticipates robust growth potential for JSW Steel, possibly driven by expansion strategies and favourable domestic conditions.

From Karnataka Roots to Global Presence

Founded in Karnataka, JSW Steel has emerged as India’s largest integrated steel producer. The company has developed a total production capacity of 35.7 million tonnes per annum (MTPA), with operations spanning across India and the United States. Notably, 6 MTPA is currently under the commissioning phase.

Looking forward, JSW Steel aims to scale its production capacity to 51.5 MTPA by FY31. Of this, 50 MTPA will be based in India, aligning with the country’s infrastructure growth and increasing demand for steel.

Recent Share Price Performance 

Since the beginning of the calendar year, JSW Steel’s share price has surged by approximately 17%. This uptrend has been supported by a combination of rising global steel prices and policy-level efforts by the Indian government to limit steel imports, creating a favourable environment for domestic producers.

Global Strategy: Optimising International Operations

As part of its broader strategic vision, JSW Steel has announced a share buyback in its Italian subsidiary, Piombino Steel. The company plans to repurchase 220 million shares, valued at ₹1,676.45 crore (US$ 195.5 million). This move is seen as a step towards optimising its global operations and potentially increasing shareholder value within the subsidiary.

Conclusion

JSW Steel’s climb to the top of the global steel valuation league highlights the growing influence of Indian corporates on the international stage. While traditional metrics like revenue still favour legacy players such as ArcelorMittal, market valuation reflects investor confidence in JSW Steel’s growth story, fuelled by domestic demand, capacity expansion, and strategic international moves.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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