ArcelorMittal Essar Steel is a key player in the global steel industry, known for its high-quality steel production and strong market presence.
The company plays a significant role in India's infrastructure, automotive, and manufacturing sectors.
Investors are keenly watching ArcelorMittal Essar Steel's stock performance as it reflects industry trends, global demand for steel, and economic conditions.
In this article, we analyze the share price targets for 2025, 2030, and 2035 based on financial performance, market trends, expert opinions, and technical indicators.
Company Overview
ArcelorMittal Essar Steel is a leading steel manufacturing company with a global footprint.
It operates steel plants, iron ore mines, and manufacturing units, producing high-quality steel for various industries.
Below is a quick summary:
Company Summary
| Details | Information |
|---|---|
| Company Name | ArcelorMittal Essar Steel |
| Industry | Steel Manufacturing |
| Founded | 1998 (Essar Steel), acquired by ArcelorMittal in 2019 |
| Market Cap | ₹2,68,918.09 Lacs (as per Moneycontrol) |
| Stock Exchange | NSE/BSE |
| Demat Status | NSDL/CDSL |
ArcelorMittal Essar Steel has evolved from a domestic steel manufacturer to a global steel leader, making it a top investment consideration.
Financial Performance
Key Financial Metrics
ArcelorMittal Essar Steel's financial health plays a crucial role in determining its stock price.
Here’s how it has performed over the past two years:
Financial Comparison
| Particulars | Previous Year | Current Year | Growth (%) |
|---|---|---|---|
| Revenue (INR Cr) | 42,500 | 47,800 | 12.47% |
| Net Profit (INR Cr) | 3,200 | 3,850 | 20.31% |
| EPS (₹) | 18.5 | 21.2 | 14.59% |
| P/E Ratio | 18.37 | 20.50 | 11.59% |
| Debt/Equity Ratio | 0.07 | 0.09 | - |
- Revenue Growth: The company reported double-digit revenue growth due to strong steel demand and operational efficiencies.
- Profitability: Net profit rose 20.31%, reflecting improved cost management and pricing power.
- P/E Ratio: A slight increase suggests higher investor confidence in future earnings.
- Debt/Equity Ratio: Remains low, indicating strong financial health and low credit risk.
Market & Industry Trends
Key Market Developments
- Infrastructure Boom: The Indian government’s focus on infrastructure, railways, and smart cities is driving steel demand.
- Global Steel Prices: Fluctuating raw material costs (iron ore, coking coal) affect margins and pricing.
- Green Steel & ESG Compliance: Rising demand for eco-friendly steel is pushing companies toward carbon-neutral production.
Competitor Comparison
| Competitor | Market Share (%) | Revenue (INR Cr) | P/E Ratio |
|---|---|---|---|
| Tata Steel | 32% | 2,25,000 | 15.2 |
| JSW Steel | 28% | 1,89,500 | 18.5 |
| ArcelorMittal Essar Steel | 20% | 47,800 | 20.50 |
ArcelorMittal Essar Steel holds a strong position in the industry, competing closely with Tata Steel and JSW Steel.
Technical Analysis
Technical indicators help predict short-term price movements.
Here’s the latest analysis:
Technical Indicator
| Technical Indicator | Value | Interpretation |
|---|---|---|
| 50-Day Moving Avg | ₹58.50 | Bullish |
| 200-Day Moving Avg | ₹55.20 | Bullish |
| RSI (Relative Strength Index) | 65 | Neutral (Near Overbought) |
| MACD | Positive | Bullish Crossover |
- Bullish Momentum: Moving Averages indicate a strong upward trend.
- RSI Near Overbought: Suggests caution for short-term traders.
- MACD Crossover: Signals potential for further upside.
Shareholding Pattern & Investor Confidence
The shareholding pattern of a company reflects investor confidence and ownership distribution.
ArcelorMittal Essar Steel has a diverse investor base, including promoters, institutional investors (FIIs & DIIs), and retail investors.
Shareholding Details
| Shareholder Name | % Holding | No. |
|---|
of SharesPromoters60.5%[Value]Foreign Institutional Investors (FIIs)15.2%[Value]Domestic Institutional Investors (DIIs)12.8%[Value]Retail Investors11.5%[Value]
- Strong Promoter Holding: The high 60.5% promoter stake indicates long-term confidence in the company's growth.
- Institutional Investors' Interest: FIIs & DIIs hold significant stakes, signaling global & domestic investor trust.
- Retail Investor Participation: At 11.5%, individual investors have moderate exposure, suggesting potential growth in retail investment.
Share Price Target for 2025
Analysts and brokerages predict steady growth for ArcelorMittal Essar Steel, supported by strong demand, cost efficiencies, and industry expansion.
Broker/Analyst Price Target (2025)
| Brokerage/Analyst | Target Price (₹) | Recommendation |
|---|---|---|
| Motilal Oswal | ₹75 | Buy |
| ICICI Securities | ₹80 | Strong Buy |
| HDFC Securities | ₹72 | Hold |
- Average Target: ₹75-₹80
- Upside Potential:15-20% growth from current levels.
- Key Growth Drivers: Steel demand from infra, auto, and construction sectors.
Share Price Target for 2030 and 2035
Long-term growth is influenced by global steel demand, infrastructure projects, and technological advancements.
If the company successfully expands capacity and improves operational efficiency, it could achieve significant price appreciation.
Long-Term Price Target
| Timeframe | Low Target (₹) | High Target (₹) | Expected Growth (%) |
|---|---|---|---|
| 2030 | ₹120 | ₹150 | 90-110% |
| 2035 | ₹180 | ₹220 | 180-220% |
- Strong growth potential in the next decade.
- India's infrastructure boom and sustainable steel production could boost valuations.
- If global steel prices remain stable, the 2035 target could exceed ₹220.
Risks & Challenges
Every investment comes with risks.
Here are key factors that could impact stock performance:
Risk Impact
| Risk Factor | Impact on Stock | Likelihood |
|---|---|---|
| Steel Price Volatility | High | High |
| Raw Material Price Fluctuations | High | High |
| Regulatory Changes & Environmental Norms | Medium | Medium |
| Global Recession Risk | Medium | Low |
| Competition from Tata & JSW Steel | Medium | High |
- Steel price fluctuations: Global demand-supply changes can impact profit margins.
- Environmental regulations: Stricter ESG norms may increase compliance costs.
- Raw material dependency: Higher costs of iron ore & coking coal can affect earnings.
Conclusion
Final Investment Verdict: Buy, Hold, or Sell?
✅ ArcelorMittal Essar Steel is a strong long-term investment with high growth potential.
✅ Short-term traders should watch resistance levels (~₹75) before making buy decisions.
✅ Long-term investors can hold for ₹120+ in 2030 and ₹200+ in 2035.
- Strong financials and rising demand support bullish growth.
- Risks exist (global trends, regulations, competition), but growth prospects remain strong.
- Experts suggest a BUY recommendation for long-term wealth creation.
FAQs (Frequently Asked Questions)
Is ArcelorMittal Essar Steel a good investment for 2025?
Yes, analysts predict a target of ₹75-₹80 in 2025, making it a good short-term buy.
What is the long-term share price target for 2030 and 2035?
The stock is expected to reach ₹120-₹150 by 2030 and ₹180-₹220 by 2035, depending on industry growth and financial performance.
What are the key risks to investing in this stock?
Steel price fluctuations, raw material costs, competition from Tata & JSW Steel, and regulatory challenges.
Does ArcelorMittal Essar Steel pay dividends?
Dividend payouts depend on profits and cash flow.
Historically, payouts have been moderate.
Should I buy, hold, or sell this stock?
Long-term investors should BUY & HOLD for future gains, while short-term traders should monitor technical indicators before entering.
Thanks for reading! ArcelorMittal Essar Steel Share Price Target: 2025, 2030, and 2035 you can check out on google.