India’s Fastest-growing Conglomerate and Korea’s Posco Group Sign MoU to Develop a Steel Plant In India With Initial Capacity Of 5 MTPA
The one-year return is 63.55 per cent turning, and whooping 800 per cent returns in 5 years.
JSW Group (JSW Energy Ltd), one of India’s fastest-growing conglomerates, has signed a Memorandum of Understanding (MoU) with Korea’s POSCO Group (POSCO), outlining a framework for collaboration in steel, battery materials, and renewable energy sectors in India.
India is one of the fastest growing economies in the world. This is reflected in a strong demand for steel which is accelerating at a faster pace than the GDP growth of the country. This presents a unique opportunity for the Indian steel sector. The partnership will focus on setting up an integrated steel plant in India with an initial capacity of 5 million tonnes per annum (MTPA).
The collaboration leverages JSW’s manufacturing and project strengths with POSCO’s technological expertise to foster innovative solutions for India's steel and energy sectors. The agreement was signed at JSW’s Mumbai headquarters, with JSW Chairman Sajjan Jindal, POSCO Chairman Chang In-hwa, and senior executives present.
DSIJ’s 'multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
Commenting on the collaboration, Mr. Sajjan Jindal, Chairman of JSW Group, said, “This MoU with POSCO marks a significant step forward in our journey to contribute to the Indian steel industry. As one of the world’s fastest-growing economies, India presents tremendous opportunities for sustainable growth, and our partnership with POSCO strengthens JSW’s commitment to drive that transformation. This JV also entails collaboration for renewable energy for a state-of-the-art integrated steel plant and for setting up an EV ecosystem in India. Together, we aim to set a benchmark in technology and sustainability that can shape the future of manufacturing in India and beyond.”
Mr. Chang In‐hwa, Chairman of POSCO said, "We are delighted to strengthen our ties with JSW Group. This collaboration will contribute significantly to the economic development of Korea and India and drive our joint efforts towards a more eco-friendly and sustainable future."
JSW Energy Ltd and its subsidiaries are primarily engaged in the business of generation of power from its power assets located at Karnataka, Maharashtra, Nandyal and Salboni. It is the holding company for the JSW group's power business. The company also has a JV company engaged in mining activities and an associate engaged in manufacturing of turbines.
JSW Energy Ltd has a market capitalisation of Rs 1,12,687 crore and is currently trading at Rs 645. The stock has reached a 52-week high of Rs 805 and a low of Rs 375 over the past year. The one-year return is 63.55 per cent turning, and whooping 800 per cent returns in 5 years. The company has been maintaining a healthy dividend payout of 20.1 per cent.
As per the Quarterly Results, in Q1 FY25, the company reported a revenue was Rs 2,879 crore, showing a decline of 1.67 per cent year-over-year (YoY) but an increase of 4.46 per cent quarter-over-quarter (QoQ). Net profit for the same period was Rs 534 crore, up significantly by 1,741.38 per cent YoY and 54.78 per cent QoQ. For the fiscal year 2024, revenue reached Rs 11,486 crore, up by 11.17 per cent compared to FY23. Net profit for FY24 was Rs 1,725 crore, marking a growth of 16.55 per cent from the previous fiscal year.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.