JSW Steel shares: A stake sale in BPSL may further strengthen the company’s financial position

JSW Steel shares are down today. At 2:10 p.m. IST 13^th November, 2025, JSW Steel shares are down by 0.068%, trading at Rs 1,181. Nifty 50 index is up by 0.061% at this time.

JSW may sell 50% stake in BPSL

Media reports have come that JSW Steel may be selling its 50% stake in Bhushan Power & Steel Ltd (BPSL) to JEE steel of Japan. According to some media reports, the deal was already finalized but then the Supreme order against JSW Steel’s acquisition of BPSL came. JSW had acquired BPSL through an insolvency resolution plan. An earlier Supreme Court order had cancelled this resolution plan and subsequent acquisition of BPSL. But in a more recent order, the Supreme Court overturned its earlier order. It held up the insolvency plan and acquisition of BPSL by JSW Steel. Now the roads are clear for a stake sale by JSW Steel in BPSL.

The successful turnaround of BPSL

JSW Steel has been able to successfully turn around the once insolvent BPSL. In the September 2025 quarter, BPSL posted operational revenue of Rs 5,612 crore. It posted profit after tax of Rs 166 crore. JSW Steel’s resolution plan for BPSL was of Rs 19,300 crores.

Over the years, JSW steel has achieved significant competencies in achieving high operational efficiency in its steel plants. This it does through tight cost control and use of more efficient technology. It also has high capacity utilization in its steel plants. Capacity utilization at its Indian steel plants stood at 92% at the end of September quarter. Higher capacity utilization lowers the fixed cost per unit of steel produced. This in turn lowers the total cost per unit of output. Fixed costs are very high in steel plants.

According to reports, JSW Steel may use the amount raised from stake sale in BPSL for cutting down its debt level. At the end of September 2025 quarter, net debt of JSW Steel stood at Rs 79,153 crore. Net debt is the total debt of a company minus the cash and cash equivalents that it has. Reduction in debt will further strengthen the financial position of the company.

JSW Steel shares have gained 2.05% in the past 5 days. Year-to-date (YTD) in 2025, the stock has gained 30.43%. Nifty 50 index has gained 9.06% in this period. The stock has outperformed the Nifty 50 index by around 21% in 2025. Nifty Metal Index has gained 22.69% YTD this year. JSW Steel’s stock has 14.86% weight in Nifty Metal index. The stock has outperformed this index by around 8% this year.

Shares of steel companies are trading at higher P/E multiples

JSW Steel shares are currently trading at 12-month trailing P/E ratio of 47.95. Its peers in the steel industry are also trading at high multiples. Tata Steel shares are currently trading at a P/E ratio of around 48.68. JSPL shares are trading at a P/E multiple of around 40.

52-week high price of JSW Steel shares currently is Rs 1,223.90. 52-week low price of the stock is Rs 880.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest. Investments in stocks are subject to market risks and other risks. There is no guarantee of the return that will be actually given.

Source: NSE, JSW Steel