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Today's prices ask more of JSW Steel than of UltraTech Cement.
At current prices, buyers of JSW Steel are assuming about 16% growth against 9% in its own record; for UltraTech Cement it is 19% against 14%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: the two are worth roughly the same on the stock market.
- Record: On revenue the two have grown at much the same pace: JSW Steel compounded at about 13% a year (FY2018–FY2026) and UltraTech Cement at about 13% (FY2019–FY2026).
- What to watch: steel spreads at JSW Steel; cement prices at UltraTech Cement.
| JSW Steel | UltraTech Cement | |
|---|---|---|
| Price | ₹1,348 | ₹12,100 |
| Market cap | ₹4.11L Cr | ₹3.57L Cr |
| P/E | 14.5 | 40.5 |
| P/B | 4.11 | 4.65 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
One of India's two largest steelmakers
JSW Steel, the flagship of Sajjan Jindal's JSW group, is one of India's two largest steel producers. Its biggest plant is at Vijayanagar in Karnataka, with others at Dolvi in Maharashtra and in Odisha, Tamil Nadu and Chhattisgarh, and it bought Bhushan Power & Steel out of insolvency in 2021.
The biggest cement maker in India
UltraTech Cement, part of the Aditya Birla group through Grasim Industries, is India's largest cement producer, with plants and grinding units across the country and a capacity well ahead of its nearest rival. It also sells ready-mix concrete and building products, and has announced a move into cables and wires.
02The records side by side
On revenue the two have grown at much the same pace: JSW Steel compounded at about 13% a year (FY2018–FY2026) and UltraTech Cement at about 13% (FY2019–FY2026). By revenue, JSW Steel is about 2.1 times the size of UltraTech Cement. JSW Steel kept 13.8% of revenue as net profit in FY2026; UltraTech Cement kept 9.3% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: JSW Steel · UltraTech Cement.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Steel spreadsThe gap between steel prices and raw-material costs drives profit far more than volumes do.
- Capacity expansionJSW keeps adding capacity; returns on that capex decide long-term value.
- Cement pricesRealisation per tonne moves with regional demand and how disciplined producers are on price.
- Capacity utilisationPlants are expensive to build; running them closer to capacity lifts returns.
05What could go wrong
- A downturn in steel pricesSteel profits can fall by half or more in a weak year.
- Coking coal costsMost coking coal is imported and its price is volatile.
- A price warRapid expansion by the Adani group's cement companies could pressure prices.
- Construction slowdownsWeaker housing or government infrastructure spending cuts demand.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is JSW Steel or UltraTech Cement better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, JSW Steel trades at 14.5 times earnings and 4.11 times book value, and UltraTech Cement at 40.5 times earnings and 4.65 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between JSW Steel and UltraTech Cement?
JSW Steel, the flagship of Sajjan Jindal's JSW group, is one of India's two largest steel producers. UltraTech Cement, part of the Aditya Birla group through Grasim Industries, is India's largest cement producer, with plants and grinding units across the country and a capacity well ahead of its nearest rival.
Are JSW Steel and UltraTech Cement valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for JSW Steel and UltraTech Cement?
Worked backwards from the share price, JSW Steel needs about 16% growth and UltraTech Cement about 19% growth, against 9% and 14% in their own records.