Group 7

Avi Vyas MBA23062

Aastha Gayasia MBA23154
Hemant Sahu MBA23019
Sachit Dixit MBA23034
Surya Chourasia MBA23200
 Overview
Company Market Cap Est. About Company
The company's diversified portfolio comprises products under hot-
rolled, cold-rolled, galvanneal, galvanised/galvalume, pre-painted,
₹ 2,02,973 tinplate, electrical steel, TMT bar, wire rod, special steel bar, round
JSW Steel Ltd Cr. 1994 and bloom categories
The company has presence across the entire value chain of steel
₹ 1,96,303 manufacturing from mining and processing iron ore and coal to
Tata Steel Ltd Cr. 1907 producing and distributing finished products
A flagship company of the Aditya Birla Group. The Co and its
Hindalco ₹ 1,20,608 subsidiaries are primarily engaged in the production of Aluminum
Industries Ltd Cr. 1958 and Copper.
Jindal Steel & It is a preferred supplier for specialty rail products to the Indian
Power Ltd ₹ 85,585 Cr. 1979 Railways and various metro projects in the country.
NMDC is engaged in exploration and production of Iron Ore along
with Diamond, production and sale of Sponge Iron and generation
NMDC Ltd ₹ 69,983 Cr. 1958 and sale of Wind Power.
 Risk and Return

Beta WACC
1.6 1.49 30.00%
28.09%
1.4 1.28 1.26 1.26
25.00% 23.58% 23.48%
1.2 1.09
1.03 1.02 20.78%
1.08
1 20.00% 19.19%
0.8
0.8 0.69
15.00%
0.6

0.4 10.00%

0.2
5.00%
0
JSW Steel Tata Steels Hindalco Jindal Steels NMDC
0.00%
Levered Unlevered JSW Steel Tata Steels Hindalco Jindal Steels NMDC

As on May-23 As on May-23

Beta measures a stock's sensitivity to market The WACC indicates the minimum return companies
movements. Beta above 1 suggest higher volatility and should earn on its investments to satisfy both debt and
below 1 indicate lower volatility equity holders
 Investments

ROCE ROCE = EBIT / Capital Employed

55% Capital Employed =

Total Assets – Total Current Liabilities
45%

35%

25%
• Return on Capital Employed (ROCE)
reflects the efficiency of capital
15% utilization and investment.

5%
• Notable variations in ROCE among
2019 2020 2021 2022 2023 JSW Steel, Tata Steel, Hindalco,
JSW Steel 0.2 0.09 0.16 0.29 0.08 Jindal Steel, and NMDC over 2019-
Tata Steel 0.14 0.06 0.12 0.31 0.13
Hindalco 0.11 0.09 0.09 0.17 0.11
2023 indicate fluctuating performance
Jindal Steel 0.04 0.05 0.14 0.24 0.14
NMDC 0.28 0.23 0.3 0.5 0.3

JSW Steel Tata Steel Hindalco

Jindal Steel NMDC Linear (NMDC)
 Capital Structure
D/E Ratio Debt Ratio
140.00% 45.00%

123.04%
120.00% 40.00% 38.30%

35.00%
100.00%
29.47%
82.35% 30.00%
80.00% 26.84%
63.60% 25.00%
60.00%
20.00% 18.79%

40.00% 33.71%
15.00%
18.70%
20.00% 10.00%

0.00% 5.00%
JSW Steel Tata Steels Hindalco Jindal Steels NMDC 1.50%
0.00%
current Target JSW Steel Tata Steel Hindalco Jindal Steel NMDC

As on May-23 As on May-23

D/E Ratio = Total Debt / Total Equity Debt Ratio = Total Debt / Total Assets

• The maximum acceptable debt-to-equity ratio for Lower ratios, as seen with NMDC, suggest minimal
steel companies is between 150%-200% or less. reliance on debt financing, while higher ratios, such as
JSW Steel, indicate a comparatively higher level of
• Target D/E ratio taken is 122.22% indebtedness
 Dividend
Dividend Payout Dividend Payout = Dividend / EAT
75%

65%

55% • companies like JSW Steel, Tata

Steel, Hindalco, and NMDC have
45%
returned cash to their owners
35% primarily through dividends.
25%
• consistent dividend payouts for
15%
JSW Steel, Tata Steel, and Hindalco
5% indicate a regular distribution of
2019 2020 2021 2022 2023 profits to shareholders
JSW Steel 0.16 0.15 0.25 0.25 0.25
Tata Steel 0.15 0.74 0.4 0.16 0.5
Hindalco 0.05 0.06 0.19 0.06 0.07
Jindal Steel 0 0 0 0.05 0.06
NMDC 0.37 0.45 0.36 0.46 0.35

JSW Steel Tata Steel Hindalco

Jindal Steel NMDC Linear (NMDC)