JSWSTEEL vs SAIL
Side-by-side comparison of JSW Steel Ltd. and Steel Authority of India Ltd.. Descriptive only — not investment advice.
JSW Steel Ltd.
Metals
Quality Score: 41/100
Steel Authority of India Ltd.
Metals
Quality Score: 42/100
At a glance
| Metric | JSWSTEEL | SAIL |
|---|---|---|
| Quality Score | 41/100 | 42/100 |
| P/E (trailing) | 42.0 | 27.1 |
| Forward P/E | 21.1 | 15.7 |
| ROE | — | — |
| Profit margin | +4.2% | +2.5% |
| Debt-to-equity | 118.74 | 57.76 |
| Dividend yield | +0.22% | +0.87% |
| 1Y price return | +32.4% | +62.9% |
| From 52w high | -2.2% | -4.0% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.25 | 3.35 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
JSW Steel trades at Rs 1,277.80, up 32.4% over the past 12 months and within 2.2% of its 52-week high, with price above both the 50-DMA (Rs 1,214) and 200-DMA (Rs 1,155). The trailing PE of 41.99 is the highest among readable metals peers, while the profit margin is 4.16% and the debt-to-equity ratio of 118.74 reflects heavy leverage with a rising debt trend. Forward PE compresses to 21.13, indicating the market is pricing in significant earnings improvement from the current base.
Steel Authority of India (SAIL) is a PSU-integrated steel producer trading at ₹182.89, up 62.9% over the past 12 months and within 4% of its 52-week high. The stock sits above both its 50-DMA (₹165.37) and 200-DMA (₹143.75), while fundamentals show a 2.55% profit margin, a debt-to-equity of 57.76, and a consistency score of 0 across the tracked period. Forward PE of 15.73 implies the market is pricing in meaningful earnings expansion relative to the trailing PE of 27.09.
Pros
- ✓Price momentum is strong: up 32.4% over 12 months, above both the 50-DMA and 200-DMA, and RSI at 60.11 (neutral, not overbought).
- ✓Revenue has compounded at 11.1% over 5 years; the 5-year earnings growth figure of 198.6% reflects recovery from a depressed base.
- ✓Free cash flow was positive in 3 of the tracked fiscal years, suggesting the business does generate cash in favorable cycles.
- ✓Mean analyst rating of 2.25 across 33 analysts on a 1-5 scale (lower = more constructive), with a forward PE of 21.13 well below the current trailing multiple.
- ✓Price momentum is strong: up 62.9% over 12 months and 15.39% over 3 months, currently above both the 50-DMA and 200-DMA with RSI at 62.51 (neutral zone), and only 3.99% below the 52-week high.
- ✓Revenue has grown at 11.8% CAGR over 5 years and 5-year earnings growth is 167.6%, driven by recovery from a low-margin base; forward PE of 15.73 is below the trailing PE of 27.09, implying consensus expects earnings to continue expanding.
- ✓Quality score of 50 ranks SAIL first among its 5 valid sector peers (range 22–44), suggesting relative operational metrics are the strongest within this metals peer group.
- ✓SAIL secured a court-ordered stay on a steel antitrust investigation (April 2026), limiting immediate regulatory disruption; a new CMD (Ashok Kumar Panda) was appointed in May 2026, signalling leadership continuity at the PSU level.
Cons
- ✗Debt-to-equity of 118.74 with a rising debt trend represents extreme financial leverage; a cyclical downturn in steel prices would amplify earnings volatility and debt-service risk.
- ✗Return on equity exceeded 15% in only 1 of the tracked years and current ROE data is unavailable, indicating historically inconsistent capital returns and a consistency score of just 15 out of 100.
- ✗Profit margin of 4.16% is thin for a capital-intensive business — cost inflation, input price moves, or demand softness can rapidly turn margins negative.
- ✗Quality score of 36 places JSWSTEEL below TATASTEEL (44) and HINDALCO (38) within the metals peer group, ranking 3rd of the 3 real comparables available.
- ✗Debt-to-equity of 57.76 with a rising debt trend and FCF positive in only 2 of the tracked years indicates the balance sheet is heavily leveraged and free cash generation is inconsistent — a combination that amplifies vulnerability to steel price cycles or demand slowdowns.
- ✗Profit margin of 2.55% leaves minimal buffer against input cost inflation, freight increases, or pricing pressure; the steel sector is cyclical and thin margins offer limited operating cushion in a downturn.
- ✗Fundamental consistency score is 0 and ROE above 15% was achieved in only 1 tracked year, indicating the business has not demonstrated sustained high-quality returns over the measurement period.
- ✗Mean analyst rating of 3.35 across 26 analysts (1–5 scale, lower = more constructive) sits near the mid-point of the scale, reflecting a divided analyst community — notably less constructive than the recent price rally might suggest.
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