JSW Steel Ltd. share price target

up demand and severe supply constraints. Supplies are coming back strongly as visible in increasing production levels month after month. Softening in demand and revival in supplies poses strong headwinds to prices. Hence, we believe that global prices have peaked out as visible in above mean spreads. We maintain our negative outlook on the stock due to stretched valuations (EV/EBITDA of 6x FY22e) and peaked out margins. We...

Cash flow generation healthy; Debt reduction continues JSW Energy's (JSWE) 2QFY21 results reflect the impact of lower merchant sales volumes on the back of drop in power demand and merchant prices. However, this was partly offset by operational efficiency measures. At consolidated level, EBITDA was down 1% YoY to INR9.2b. Net debt (excl. acceptances) continued reducing (by ~INR8.2b during the quarter). Interest cost has also decreased 24% YoY. Further, FCF generation is expected to be robust as ~80% of JSWE's capacity is under long-term...

of the company went up 28% to Rs 199 crore. Interest cost decreased 15% to Rs 959 crore. Depreciation increased 9% to Rs 1149 crore. PBT as a result rose 264% to Rs 2505 crore. The tax stood at Rs 910 crore and the company's PAT decrease 37% to Rs 1595 crore. Considering share of...

EBITDA margin nearly doubled sequentially to 22.9% (+11.5pps QoQ), on higher sales, lower input costs and staff expenses. PAT thereby improved to Rs. 1,593cr (vs. Rs. 561cr loss in Q1FY21), aided by lower...

Project capex progressing well as per schedule The doubling of steelmaking capacity at Dolvi from 5 million tonnes (MT) to 10 MT is currently under way and is expected to be commissioned by Q4FY21. The Dolvi expansion would enhance JSW Steel's flat product portfolio. At Vijayanagar, the 1.2 million tonnes per annum (MTPA) has been successfully commissioned and trial production is underway. Other key projects as Vijayanagar such colour coating line, pellet plant and coke oven plant are progressing as per schedule. The 0.3 MTPA colour coating line is...

6%/25% on the back of better than expected earnings in domestic ops. While overseas ops continued to drag earnings. Stock rallied sharply in last three months on the back of sharp uptick in steel...

JSW Steel's (JSW) Q2FY21 standalone result was better than our and street expectation. Its volumes at 4.1 mn tonnes (+34% YoY) were slightly ahead of our forecast. EBITDA/tonne was a beat at Rs10,136 (+31% YoY) led by higher realizations, better product mix and inventory liquidation. Despite ongoing capex of Rs240 bn over coming...

JSW Steel's consolidated EBITDA at Rs. 4,186 crore (up 85% y-o-y) was significantly above our estimates, led by higher-than-expected EBITDA/tonne at Rs. 10,087/tonne (up 59% y-o-y) and strong sales volume at 4.2mt (up 16.6% y-o-y). Management has maintained FY2021E sales volume guidance of 15mt, which implies 5% y-o-y growth in H1FY2021E. Capacity expansion at Dolvi plant (undergoing 5mtpa capacity expansion) is on track to get commissioned by Q4FY2021. Higher steel price (revision in contractual steel price for the auto sector from October), improving revenue mix (with higher domestic sales), higher operating leverage, and volume...

The OPM decreased 740 bps to 11.4%. Thus the operating profit fell by 64% to Rs 1341 crore. Cost of material consumed as a percentage of adjusted net sales fell 30 bps to 54.2%. Employee benefit expenses rose 160 bps to 5.2%. Power and fuel expenses increased 240 bps to 10.5%....