In this article, we will discuss the JSW Holdings share price target for 2024 to 2035, fundamentals, future plans, and challenges depending on the various reports from research and brokerage firms and research analysts.
Quarter 2 Results
For the quarter ending September 30, 2024, JSW Holdings reported the following key financial results:
- Total sales reported Rs 162.18 crore in Q2 FY24 as against Rs 89.17 crore in Q2 FY23, increased with 81% YoY and 495% QoQ.
- Net profit increased to Rs 119 crore in Q2 FY24 as against Rs 63.2 crore in Q2 FY23, increasing with 89% YoY and 127% QoQ.
- Operating profit is reported at Rs 158.46 in Q2 FY24, increased by 84%% YoY and 559% QoQ.
- Earnings per share (EPS) are reported at 107.80.
- The number of shareholders increased by 11.45% YoY and 0.26% QoQ from 21,870 to 21,931.
| Q2 FY 2024 | Q2 FY 2023 | YoY Change | QoQ Change | |
|---|---|---|---|---|
| Net Sales | 162.18 Cr | 89.17 Cr | +81% | 495% |
| Profit Before Tax (PBT) | 158.46 Cr | 86.13 Cr | +84% | 559% |
| Profit After Tax (PAT) | 119.64 Cr | 63.20 Cr | +89% | – |
| Net Profit | 119 Cr | 63.2 Cr | +89% | 127% |
| Basic Earnings Per Share (EPS) | 107.80 | 56.95 | +89% | – |
Stock Performance
However, due to the following financial difficulties, JSW Holdings’ stocks have registered a high performance in the last year. On November 9, 2024, the company achieved its highest stock price, which was Rs 13,620.55, which is 238% more than the initial rates of the year. However, the benchmark index of the Indian market, Sensex, increased only by 22 percent in the same period. Hence, by showing that the stockholders still have favorable expectations towards JSW Holdings despite the losses in recent quarters, this strong stock performance attests.
| Time | Returns |
|---|---|
| 6 Months | 178.19% |
| 1 Year | 281.48% |
| 2 Year | 310.67% |
| 3 Year | 289.53% |
| 5 Year | 587.81% |
Industry Overview
JSW Holdings is in India’s NBFC industry, which has expanded over the past few years. It comprises financial service companies involved in offering credit services, investments, and other services without being financial institutions. A new demand for loans has grown over the years due to the booming NBFC industry; credit requirements are for several purposes from different users, including small businesses and individual purchasers.
This change has squeezed financial inclusion in recent years through digital banking products and solutions, popularly referred to as fintech solutions. Technological advancement makes it possible for NBFCs to penetrate unserved markets and contribute toward the delivery of new and relevant financial products, satisfying emerging client preferences. However, there are a few issues with the NBFC sector nowadays. High-interest rate kos will be that firms will be able to borrow at higher costs, while in the case of NBFCs, more stringent regulatory approval is required to provide money to eliminate reckless lending. Such a scenario creates tension on NBFCs to explore various methods that would enable the organization to break even and remain duly compliant with the existing laws.
Company Overview
JSW Holdings Ltd. was set up in 1994 and is a mid-sized finance company. JSW Group’s various segments include steel, energy, and infrastructure. Different from usual banking institutions, JSW Holdings functions as a non-banking financial company, or NBFC. NBFCs are essential in the financial market since they concentrate on particular segments of the finance sector, including investment and financial products. Apart from this, they do not undertake traditional banking activities like accepting money from the public as deposits.
It is the company’s primary responsibility to make investments and provide financial services to different types and sorts of clients. The service product offering varies from equity investment, like the purchase of shares or stocks, to portfolio management, among other service products. Over the years, JSW Holdings has established itself as a formidable force in the steel manufacturing industry with the support of its parent firm, JSW Group, strengthening its foothold, hence complimenting its brand identity in the market.
Financials
Key financial metrics:
| Quarter Ending | Net Sales ( Cr) | Total Income (Cr) | PAT (Cr) | EPS |
| September 2024 | 162.18 | 162.18 | 119.64 | 107.80 |
| June 2024 | 27.23 | 27.23 | 20.00 | 17.51 |
| March 2024 | 26.99 | 26.99 | 19.42 | 17.51 |
| December 2023 | 27.29 | 27.29 | 18.22 | 16.18 |
| September 2023 | 89.17 | 89.17 | 63.20 | 56.95 |
JSW Holdings share price target for next 10 years
| Year | Minimum share price | Maximum share price |
|---|---|---|
| 2024 | 8,500 | 18,492 |
| 2025 | 12,462 | 22,739 |
| 2026 | 15,792 | 26,780 |
| 2027 | 18,382 | 31,390 |
| 2028 | 21,800 | 32,550 |
| 2029 | 25,468 | 35,792 |
| 2030 | 28,740 | 38,650 |
| 2031 | 30,450 | 41,620 |
| 2032 | 35,795 | 44,445 |
| 2033 | 38,535 | 46,220 |
| 2034 | 43,680 | 48,279 |
| 2035 | 45,705 | 51,635 |
Strengths
Debt-Free Status: Lack of debts is another advantage for a company as it increases financial stability and does not restrict the company in its decision-making process.
Support from JSW Group: In a large diversified group like JSW Holdings, there are a number of factors or sources of strength that are available to this company, which may not be possible in the case of standalone or small companies.
Market Position: JSW Holdings is already acknowledged as one of the participants in the midcap finance industry and focuses on the offering of a broad portfolio of financial products and services. Employment in this solid position can help to compete within the sector effectively.
Weaknesses
Recent Revenue Contraction: The reduction of the revenue level during Q2 of the year 2024 may also signal poor internal management or external adversities, which the firm has to resolve.
Profitability Issues: The stated losses raise other emerging profit challenges that require reforms for recurring profitability.
Stock Volatility: Another thing that can be noted concerning this company is that recently, it has experienced inevitable fluctuations in its stock prices, something that can act as a barrier to conservative investors who would like to have stable and secure returns, primarily operating within an unstable economic environment.
Future Plans
Operational Efficiency: Concisely, through operational tricks, the company looks forward to cutting operational expenses with a view to boosting operational profitability. The commitment to increase resource utilization means that JSW Holdings expects to enhance its efficiency and maintain its profitability in the future.
Market Expansion: Venturing into other markets, as well as customers, could have diversified sales opportunities and relieve pressure in existing areas.
Product Diversification: New financial products necessary to satisfy new customers’ needs may increase the company’s market share as well as satisfy its customers’ needs and expectations. Product diversification can result in additional forms of income and, as such, can be very productive in reducing all the risks that are inherent in operations.
Conclusion
There is both bullish and bearish news for JSW Holdings as a stock for investment: The largest steelmaker in India, the company has no liability and is debt-free, but in its recent achievements, it reported declining revenues and poor profitability in Q2 FY 2024.
As for the current challenges that put the company in a delicate position, it is recommended that investors pay attention to future financial statements as well as management plans to address these issues. To determine the company’s capacity, the investors should pay attention to the future management strategies as it continues to struggle with these difficulties while at the same time possessing good fundamentals for future growth.
Due to the increase in competition, the management of the company needs to make some corrections to the previous strategies so that the company can be able to come back to the market and then be able to sustain itself in the market due to changes in market forces.
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not an investment advice.
FAQs
Is JSW Holdings a good stock to invest in?
The recent performance and possibility of its rebound indicate that investors should assess their ability and willingness to bear risks against the company’s financial position when making an investment decision.
Is JSW Holdings a multi-bagger?
Although the firm has offered relatively high returns in the past year, recent losses should act as a word of caution with regard to future returns.
Who is the owner of the JSW Holdings?
JSW Holdings is a subsidiary of JSW Group, which was founded by Sajjan Jindal exercising his capacity as the Chairman of the Group.
Is JSW Holdings debt-free?
Indeed, as of now, JSW Holdings has been free from debts for more than 5 years, which contributes to the company’s solidity.
What kind of product is JSW Holdings?
Technology and financial services being the core area of operation of the NBFC, JSW Holdings mainly deals with goods in the form of equity investments, portfolio management services, and other related financial products.