JSW Steel Is The World’s Best Steel Stock

JSW steel is the world’s best-performing steel stock as its ability to maintain margins and lower costs helped it make most of growing steel demand in India. Shares of the steelmaker have risen more than 30 percent so far this year, while its peers, including Jindal Steel and Power Ltd., Steel Authority of India Ltd. and Tata Steel Ltd. fell. Not only that, the Sajjan Jindal-led company, which is trading close to its 52-week high, outperformed major steelmakers globally. JSW Steel, in line with most of its regional peers, reported consistent margins, making the most of its highest utilisation level. The company’s Ebitda per tonne in the first quarter of the ongoing financial year is the second-highest in nine years, driven by an increase in product spreads—difference between the cost of raw material and selling price. The year-on-year growth in Ebitda-per-tonne was the highest among peers. JSW Steel remained India’s No. 1 steelmaker by volumes for the second straight year in 12 months to March 2018. And it continues to add capacity. JSW Steel will spend about Rs 21,700 crore towards crude steel expansion and another Rs 5,300 crore to increase downstream capacity by nearly 3.2 million tonnes per annum. Still, the company has the lowest capital per tonne cost compared to Tata Steel and SAIL. The return on capital employed for JSW Steel is higher than Tata Steel.