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Financial Analysis of Jsw and Sail

In: Business and Management

Submitted By haggrawal
Words 9892
Pages 40
Group Research Project
Jindal Steel Works Ltd. & Steel Authority of
India Ltd.

Executive Summary
This report provides an elaboration of the steel industry of India as well highlights the comparison parameters of the current and prospective profitability, liquidity and financial stability of two major players of the industry – Jindal
Steel Works Ltd. and Steel Authority of India Ltd.
The analysis of the players includes trend prevalent in the industry, horizontal and vertical analysis of the organizations as well as ratios such as Interest Coverage, Solvency, Profitability and Performance. Other calculations include Z-Score analysis, Financial Statements Case analysis and Total Assets and earnings per share to name a few.
All calculations can be found in the attached excel files. Results of data analyzed show that SAIL has had a drastic downturn for the last five years whereas JSW has improved its value in the market by adoption of certain new technologies at timely intervals.
The report finds the prospects of the companies in their respective current positions are not positive. The major areas of weakness require further investigation and remedial action by management.
Some challenges that are being faced by the company as discovered during the Qualitative Analysis of the organizations are,




There have been multiple fluctuations in the market and the numerous possibilities of China's entrance into the exporting markets
Thought the domestic demand has remained untapped and unfulfilled, there is a reduced demand for steel across the world, due to the current economic scenario.

Taking into consideration the above challenges and understanding the financial as well as non-financial statuses of both the companies, some of the recommendations discussed in the report are as follows:





Both the companies have the capacity to…...

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