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JSW Steel Ltd.
19 May 2016
Reliance Securities
JSW Steel (JSTL) has exceeded ours as well as street expectations in 4QFY16 on the back of strong sales volume, lower costs and marginal hike in steel prices. Its standalone EBITDA rose 6% yoy & 102% qoq to Rs17.7bn (v/s our estimate of Rs15.3bn). Steel sales volume rose 7% yoy & 29% qoq to 3.28mn tonne (v/s our estimate 3.2mn of tonne) due to re-commissioning of blast furnaces at Vijaynagar, Salem & Dolvi. JSTL's APAT at Rs3.74bn up 27% yoy topped our estimate of Rs3.2bn despite 74% sequential decline due to tax credit in 3QFY16. As we envisage significant step-up in EBITDA/tonne due to imposition of Minimum Import...
JSW Steel Ltd. has an average target of 1068.00 from 7 brokers.
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