JSW Steel, a steel manufacturing company, gave 21% annual returns in the last 20 years. Swipe to know what led to these impressive returns.
It was the first to introduce a franchise-based model through JSW Shoppe, bypassing traditional middlemen and fostering stronger customer relationships.
It improved its technological expertise through partnerships with global giants. The key partnerships were with JFE Steel in 2009 and Marubeni-Itochu in 2011.
It enhanced scale through acquisitions. Two major acquisitions: Welspun Maxsteel and Bhushan Steel and Power.
It has inked a joint venture with JFE Steel Corporation to make grain-oriented electrical steel used in transformers. Production is expected to commence by FY27.
Investors should not ignore the high cyclicality of the stock. It periodically goes through severe margin contractions (contd.)
Its operating margin fell from 23% in 2022 to 7% in 2023. Also, this is not a stock recommendation. Do the due diligence before investing.