Operating Margin - JSW Holdings Ltd (NSE:JSWHL)

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Price: 19 970 INR -0.4%

Market Cap: 221.7B INR

91.6%

Current

95%

Average

24%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

91.6%

Operating Profit

1.6B

Revenue

1.7B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
IN		JSW Holdings Ltd NSE:JSWHL	221.6B INR	92%
US		Blackstone Inc NYSE:BX	184.9B USD	50%
US		BlackRock Inc NYSE:BLK	164.5B USD	33%
US		KKR & Co Inc NYSE:KKR	116.4B USD	2%
CA		Brookfield Corp NYSE:BN	101.7B USD	26%
CA	B	BROOKFIELD ASSET MANAGEMENT LTD TSX:BAM	118B CAD	54%
ZA	N	Ninety One Ltd JSE:NY1	85.2B Zac	26%
CA		Brookfield Asset Management Inc NYSE:BAM	85.5B USD	54%
US		BROOKFIELD ASSET MANAGEMENT LTD F:RW5	69.6B EUR	54%
US		Bank of New York Mellon Corp NYSE:BK	80.8B USD	0%
LU	R	Reinet Investments SCA JSE:RNI	79.1B Zac	N/A

JSW Holdings Ltd
Glance View

Economic Moat

None

Market Cap

221.6B INR

Industry

Financial Services

Nestled within the sprawling folds of the Sajjan Jindal-led JSW Group, JSW Holdings Ltd. emerges as a distinct pillar specializing in investments and financial services. Unlike the more tangible manufacturing ventures of its parent group, such as steel, energy, and infrastructure, JSW Holdings operates primarily as an investment company. It’s mainly engaged in making strategic investments in various group companies and subsidiaries, establishing its unique position as a financial intermediary within the conglomerate. This distinct role transforms JSW Holdings into a sort of financial architect, crafting a mosaic of investment endeavors that support the overarching growth of the JSW empire. By leveraging its expertise in financial structuring, the company sustains itself through dividends and gains from its wide-ranging investment portfolio. What sets JSW Holdings apart is its meticulously curated portfolio, strategically designed to complement and enhance the synergies within the JSW Group's expansive industrial ecosystem. By holding significant stakes in entities across diverse sectors such as steel, cement, energy, and infrastructure, JSW Holdings aligns its financial interests with the operational success of its sibling companies. This strategic intertwining essentially creates a pathway for consistent revenue streams, as the performance of these subsidiary juggernauts directly correlates with the dividends and capital appreciation feeding into JSW Holdings. In essence, while the company itself might not be producing tangible goods or erecting structures, it plays a crucial role in enhancing the group’s value chain, intertwining its financial ambitions with the broader industrial aspirations of the JSW conglomerate.

View JSWHL Analysis

JSWHL Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
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	Walmart Inc NYSE:WMT	US
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	Berkshire Hathaway Inc NYSE:BRK.A	745 600 USD -1.34%
	Bank of America Corp NYSE:BAC	55.27 USD 1.86%
	Mastercard Inc NYSE:MA	572.23 USD 1.06%
	UnitedHealth Group Inc NYSE:UNH	327.42 USD -0.22%
	Exxon Mobil Corp NYSE:XOM	116.69 USD 0.13%

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JSW Holdings Ltd
NSE:JSWHL