JSPL becomes Greatest Wealth Creator worldwide in the Steel Sector

The year 2020 has indeed been a roller coaster ride for India as well as the global economy. COVID-19 pandemic had sparked off an unprecedented crisis of significant proportions with economic activities coming to a screeching halt.

When big giants from different industries in India were struggling with their production & sales, JSPL decided to keep its mills running as it turned its focus to export markets like South East Asia, Middle East and Europe to offset the loss in domestic volumes.

The company’s DNA of searching for opportunities in the face of challenges not only allowed JSPL to report a Year on Year growth in shipments in 1QFY21 when the domestic peers reported a sharp drop in volumes but also help support the Indian economy by earning valuable forex.

With the nation gradually unlocking in phases, the recovery has been equally surprising. JSPL has benefited from the sharp economic revival with the company posting 16% Year on Year growth in standalone steel production and 50% Year on Year EBITDA growth in 1HFY21. 

Chart showing unmatched growth of JSPL :

Stock CMP 52 Wk low Date-Low % change from 52wk low
 JSPL            259.4              62.0 4/3/2020                                    318.4
 Usiminas              15.1                3.8 3/23/2020                                    298.9
  United States Steel Corporation                16.4                4.5 3/16/2020                                    262.1
  Steel Authority of India Ltd. (SAIL)                64.5              20.2 3/30/2020                                    220.1
  HYUNDAI Steel Company         39,400.0       12,400.0 3/23/2020                                    217.7
  ArcelorMittal               19.0                6.0         43,909.0                                    217.2
 Ternium              29.1                9.6 3/19/2020                                    203.4
  Gerdau S.A.                24.5                8.2 3/19/2020                                    200.2
 Dongkuk Steel         8,090.0         2,780.0 3/19/2020                                    191.0
  JSW Steel Limited              381.8            132.5 4/3/2020                                    188.2
 Ezz Steel              10.7                4.1 3/19/2020                                    163.5
  Tata Steel Group              632.2            250.9 3/30/2020                                    152.0
  ThyssenKrupp AG                  8.0                3.3 3/18/2020                                    143.4
 Steel Dynamics              36.4              15.0 3/18/2020                                    142.8
  Evraz Group, S.A.              472.1            200.6 3/23/2020                                    135.3
  Novolipetsk Steel (NLMK)                28.3              12.1 3/18/2020                                    133.8
  Voestalpine Group                29.4              12.7 3/16/2020                                    132.2
  Eregli Demir ve Çelik Fabrikalari TAS (Erdemir Group)                14.9                6.8 3/17/2020                                    120.2
 Bluescope Steel              17.4                8.0 3/23/2020                                    116.4
  POSCO      2,71,500.0    1,33,000.0 3/23/2020                                    104.1
  Magnitogorsk Iron & Steel Works (MMK)                10.0                5.1 3/18/2020                                      97.0
  Severstal JSC                18.0                9.1 3/9/2020                                      96.8
 Kobe Steel            545.0            283.0 3/13/2020                                      92.6
  Nucor Corporation                52.1              27.5 3/18/2020                                      89.2
 Commercial Metals              19.9              10.8 3/19/2020                                      84.8
  Ansteel Group                  3.2                1.8 5/25/2020                                      79.7
 Angang Steel                3.2                1.8 5/25/2020                                      79.7
 Tenaris                6.6                3.8 10/29/2020                                      74.8
  Nippon Steel and Sumitomo Metal Corporation          1,323.5            798.1 4/23/2020                                      65.8
  SSAB                29.1              18.3 3/16/2020                                      59.3
  JFE Steel Corporation              989.0            626.0 4/6/2020                                      58.0
  Fangda Steel                 6.9                5.0 4/28/2020                                      39.7
  China Steel Corporation                24.9              18.4 3/19/2020                                      35.4
  Baosteel Group                 6.0                4.5 6/12/2020                                      34.8
  Anyang Steel                 2.6                1.9 2/4/2020                                      34.0
  Maanshan Steel                  2.2                1.7 10/5/2020                                      26.2
 Tokyo Steel            676.0            542.0 3/13/2020                                      24.7
  Shandong Steel Group                 1.4                1.2 2/4/2020                                      24.3
  Xinyu Steel                 4.6                3.9 4/28/2020                                      18.3
  Nanjing Steel                 3.1                2.7 6/12/2020                                      15.9
  Hebei Steel Group                 2.3                2.0 5/26/2020                                      14.6
  Baotou Steel                 1.2                1.0 4/29/2020                                      11.5

JSPL stock price has also mirrored the economic ups and downs during the year with the scrip rising by 4.3x since hitting 52 weeks low in early April.

“JSPL’s unflinching focus to grow volumes by sweating assets coupled with an unwavering commitment to strengthening the balance sheet has helped the company emerge as the largest wealth creator (from the Apr’20 bottom) in the global steel sector in 2020. With more legs to the economic recovery, we firmly believe JSPL’s outlook to be even brighter”, said Amit Dixit, Vice President Institutional Equities at Edelweiss Securities.

Sharad Maverickhttps://mavericktimes.in
Sharad is a graduate in Mass communication and Journalism from Makhanlal Chaturvedi University of Journalism and Mass communication. He has worked as a photographer, cameraman, editor for various media organisation. Sharad has experience in the division of Radio, Web and Magazine. Sharad is know for his artist approach and entrepreneur career. He has understood the urge to represent the unheard voices of the society and he continues to do it in capacity of Editor-in-cheif at Maverick times and as an Artist.

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