As the world’s second-largest producer of crude steel, India produced approximately 125.32 million tonnes in FY23 and is aiming to significantly expand this capacity to 300 million tonnes annually by 2030.
The market is anticipated to grow at a compound annual growth rate (CAGR) of 9.18 percent from 2024 to 2029, fueled by government initiatives and rising investments in infrastructure and construction.
In Tuesday’s trading session, Indian steel stocks are rising due to positive sentiment following China’s recent economic stimulus aimed at boosting its real estate sector, which is the largest consumer of steel globally.
Here are a few steel stocks currently trading at a P/E ratio below the industry average :
With a market capitalization of Rs.1.01 lakh crore, the share price of Jindal Steel & Power Limited closed at Rs.1,003.90 per share on Friday, rising 1.33 percent from its previous close.
The company has a P/E ratio of 18.0, lower than industry P/E of 21.7, signifying that the stock is trading at a lower price, and has an EPS of Rs.54.8.
In terms of financial performance, the company reported an 8.2 percent year-on-year increase in revenue for Q1 FY25, reaching Rs.13,618 crore. However, net profit declined by 21 percent to Rs.1,338 crore.
Steel Authority of India Limited
With a market capitalization of Rs.54,853 crore, the share price of SAIL closed at Rs.133.91 per share on Friday, rising 3.03 percent from its previous close.
The company has a P/E ratio of 14.2, lower than industry P/E of 21.7, signifying that the stock is trading at a lower price, and has an EPS of Rs.7.11.
In terms of financial performance, the company reported a 1.5 percent year-on-year decrease in revenue for Q1 FY25, totaling Rs.23,998 crore. Additionally, net profit fell by 61.3 percent to Rs.82 crore.
Maharashtra Seamless Limited
With a market capitalization of Rs.8,431 crore, the share price of Maharashtra Seamless Limited closed at Rs.615.00 per share on Friday, falling 1.5 percent from its previous close.
The company has a P/E ratio of 9.69, lower than industry P/E of 21.7, signifying that the stock is trading at a lower price, and has an EPS of Rs.65.2.
In terms of financial performance, the company reported a 6 percent year-on-year decrease in revenue for Q1 FY25, amounting to Rs.1,151 crore. Additionally, net profit declined by 38 percent to Rs.129 crore.
Written by – Siddesh S Raskar
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