JSWSTEEL vs TATASTEEL
Side-by-side comparison of JSW Steel Ltd. and Tata Steel Ltd.. Descriptive only — not investment advice.
JSW Steel Ltd.
Metals
Quality Score: 50/100
Tata Steel Ltd.
Metals
Quality Score: 50/100
At a glance
| Metric | JSWSTEEL | TATASTEEL |
|---|---|---|
| Quality Score | 50/100 | 50/100 |
| P/E (trailing) | 14.1 | 23.0 |
| Forward P/E | 17.6 | 10.6 |
| ROE | +27.3% | +11.2% |
| Profit margin | +12.0% | +4.7% |
| Debt-to-equity | 94.16 | 89.02 |
| Dividend yield | +0.55% | +2.01% |
| 1Y price return | +32.2% | +33.1% |
| From 52w high | -3.3% | -9.5% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.30 | 2.54 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
JSW Steel trades at ₹1,284, up 32.21% over 12 months and within 3.31% of its 52-week high, with RSI at 50.72 (neutral) and price above both the 50-DMA (₹1,249) and 200-DMA (₹1,180). Trailing PE of 14.08 is the lowest among tracked sector peers, while ROE of 27.26% and profit margin of 12.03% lead the group. A debt-to-equity of 94.16 and a one-time earnings distortion from a BPSL JV gain are the dominant fundamental caveats.
Tata Steel (₹198.96) trades above its 200-DMA (₹185.21) and is up 33% over the past year, with FY26 PAT surging 243% YoY to ₹10,886 crore on the back of strong India operations. Despite the earnings improvement, the stock carries debt-to-equity of 89.0, a profit margin of 4.65%, and ROE that has not exceeded 15% in any recorded year — placing it near the lower tier of Metals peers on fundamental quality (consistency score 23). Analyst coverage spans 36 analysts with a mean rating of 2.54 on a 1–5 scale (lower = more constructive).
Pros
- ✓Trailing PE of 14.08 ranks 1st (lowest) of 6 tracked sector peers, placing JSW Steel at the cheapest valuation in the group on this metric.
- ✓ROE of 27.26% and profit margin of 12.03% are the highest readable figures among the 6 sector peers (next-best ROE is Hindustan Zinc at 76.94%, though that peer carries a quality score of 72 vs JSWSTEEL 45).
- ✓Price is above both the 50-DMA (₹1,249) and 200-DMA (₹1,180), with a 52-week drawdown of only 3.31%, reflecting sustained price strength over the past year.
- ✓Revenue has grown at a 5-year CAGR of 14.2%, demonstrating consistent top-line expansion even across varied steel-cycle conditions.
- ✓5-year revenue CAGR of 12.5% and 5-year earnings CAGR of 125.2% reflect a substantial recovery in profitability from the trough, with FY26 PAT reported up 243% YoY to ₹10,886 crore.
- ✓FCF was positive in 4 of the available fiscal years, indicating the business generates cash in most operating environments despite the capital intensity of steelmaking.
- ✓At ₹198.96, the stock trades 7.4% above its 200-DMA (₹185.21) and is up 6.6% over the past 3 months, with three identified technical support levels clustered at ₹198.94, ₹192.09, and ₹178.86.
- ✓Dividend yield of 2.01% with a ₹4 per share dividend announced for FY26 provides an income component alongside the recovery in earnings.
Cons
- ✗Debt-to-equity of 94.16 is extremely elevated for a cyclical metals business; FCF was positive in only 3 of tracked years and the consistency score of 47/100 indicates limited balance-sheet buffer against a commodity downturn.
- ✗The 991.8% five-year earnings growth figure is distorted by a one-time BPSL JV gain in Q4 FY26; forward PE of 17.64 exceeds trailing PE of 14.08, with the market pricing in an earnings step-down from the current elevated year.
- ✗ROE exceeded 15% in only 1 of the tracked years despite the current headline of 27.26%, suggesting the return profile is not structurally persistent across the business cycle.
- ✗News flow is skewed negative (3 negative, 3 neutral, 0 positive from 6 recent items), with a broker downgrade citing a valuation premium and a third-party analysis questioning the quality of reported earnings.
- ✗Debt-to-equity of 89.0 is elevated relative to the Metals sector; the flat debt trend over the recorded period means leverage has not meaningfully declined despite the earnings recovery — a high-severity flag given the cyclical nature of steel pricing.
- ✗ROE of 11.16% has not exceeded 15% in any year within the recorded period, and the fundamental consistency score of 23 ranks 2nd-lowest among the 6 Metals peers tracked (vs JSW Steel at 45 and Hindustan Zinc at 72).
- ✗Profit margin of 4.65% is thin for a company carrying substantial debt; in a steel-price downturn, even a modest revenue decline can simultaneously compress earnings and tighten cash flow.
- ✗Trailing PE of 23.0 against a forward PE of 10.6 prices in a near-doubling of earnings power; if the European segment headwinds persist or India steel spreads narrow, the implied step-up may not materialise on the expected timeline.
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