Current Rating Overview
On 12 January 2026, MarketsMOJO revised JSW Steel Ltd.’s rating from 'Buy' to 'Hold', reflecting a change in the company’s overall assessment. The Mojo Score decreased by 7 points, moving from 75 to 68. This rating indicates a cautious stance, suggesting that while the stock remains fundamentally sound, investors should carefully weigh the company’s valuation and market conditions before making new commitments.
Here’s How JSW Steel Looks Today
As of 24 January 2026, JSW Steel Ltd. continues to demonstrate solid operational performance and financial health. The company’s market capitalisation stands at a robust ₹2,89,762 crores, making it the largest player in the ferrous metals sector and accounting for 25.47% of the sector’s total market value. This dominant position underscores its importance within the industry and its influence on sectoral trends.
Quality Assessment
The company’s quality grade is rated as 'good', reflecting consistent growth and operational efficiency. JSW Steel has exhibited healthy long-term growth, with net sales increasing at an annualised rate of 21.10% and operating profit growing at 19.64%. The firm has reported positive results for the last three consecutive quarters, with quarterly net sales reaching a peak of ₹45,991 crores and quarterly profit after tax (PAT) hitting ₹2,668 crores. These figures highlight the company’s ability to sustain profitability and expand its revenue base amid fluctuating market conditions.
Valuation Considerations
JSW Steel’s valuation is currently graded as 'fair'. The stock trades at a discount relative to its peers’ historical averages, supported by a Return on Capital Employed (ROCE) of 10.1% and an Enterprise Value to Capital Employed ratio of 2.2. While the company’s Price/Earnings to Growth (PEG) ratio stands at 2.5, indicating moderate growth expectations priced in by the market, the valuation suggests that the stock is not excessively expensive. This balance between price and growth potential is a key factor behind the 'Hold' rating, signalling that investors should monitor valuation trends closely.
Financial Trend and Stability
The financial grade for JSW Steel is 'positive', reflecting strong fundamentals and improving profitability. Over the past year, the stock has delivered a total return of 25.76%, outperforming the broader BSE500 index over multiple time frames including one year, three months, and three years. Profit growth has been steady, with an 18.5% increase in earnings over the last twelve months. Institutional investors hold a significant 36.94% stake in the company, indicating confidence from well-informed market participants who typically conduct rigorous fundamental analysis.
Technical Outlook
From a technical perspective, JSW Steel is rated as 'mildly bullish'. The stock has shown resilience with a one-month gain of 6.72% and a six-month increase of 13.13%, despite a slight dip of 1.31% on the most recent trading day. This suggests that while short-term volatility exists, the overall trend remains positive, supporting the view that the stock is fairly valued but not currently a strong buy candidate.
Implications for Investors
The 'Hold' rating implies that JSW Steel Ltd. is a stable investment with solid fundamentals but limited upside potential at present. Investors should consider maintaining existing positions while monitoring market developments and company performance closely. The current valuation and technical signals suggest that the stock is fairly priced, and new investors might prefer to wait for more favourable entry points or clearer catalysts before committing fresh capital.
Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens!
- - Recently turned profitable
- - Strong business fundamentals
- - Pre-breakout opportunity
Sector Leadership and Market Position
JSW Steel’s commanding presence in the ferrous metals sector is reinforced by its annual sales of ₹1,74,496 crores, which represent 21.73% of the industry’s total revenue. This scale provides the company with competitive advantages in procurement, production, and distribution. Its large-cap status and sectoral weightage make it a key stock for investors seeking exposure to India’s steel industry.
Long-Term Growth Prospects
The company’s sustained growth in net sales and operating profit over recent years reflects a robust business model capable of weathering cyclical downturns. The positive quarterly results and steady profit growth indicate that JSW Steel is well-positioned to capitalise on infrastructure development and industrial demand in India and abroad. However, the current valuation and technical indicators counsel a measured approach to new investments.
Conclusion
In summary, JSW Steel Ltd.’s 'Hold' rating by MarketsMOJO as of 12 January 2026 is supported by a combination of good quality fundamentals, fair valuation, positive financial trends, and mildly bullish technical signals. Investors should view this rating as a signal to maintain existing holdings while exercising caution on new purchases, given the stock’s current pricing and market dynamics. The company’s strong market position and consistent growth provide a solid foundation, but the valuation suggests limited immediate upside.
Unlock special upgrade rates for a limited period. Start Saving Now →
