JSW Steel Ltd. share price target

ICICI Securities Ltd | Retail Equity Research JSW Steel reported Q4FY16 numbers that were better than our estimates. While topline broadly came in line with our estimates,...

Strong QoQ recovery; net debt declined YoY Guidance of 24% volume growth is best among peers JSW Steel (JSTL) 4QFY16 consolidated EBITDA nearly doubled QoQ to INR18.2b on...

JSW Steel has run up ~40% from its lows since the MIP implementation, significantly outperforming the benchmark indices, which we expect will continueas it reapsthe full benefits of a jump in steel prices and starts ramping up volumes from its expanded...

Stage is set for another steel price hike in April Indian retail steel prices have increased by ~INR3,000-6,000/t since MIP was announced in early February, significantly higher than our initial estimate of...

Planned shutdowns of BFs in Vijayanagar, Dolvi and Salem led to a volume decline (2.55 mT, -15.8% YoY, -20.1% QoQ). Coupled with weaker realisations (Rs 28,263, -24.3% YoY, -6.6% QoQ), JSW Steel (JSTL) reported the weakest standalone EBITDA/t (Rs 3,199/t, -49.6% YoY, -29.8% QoQ) since 4QFY09.

8 The company has approached lenders to get a relaxation on covenants and expect to getapprovalsbytheendofMarch2016. 9 TheindustryhasfiledforsafeguarddutyonwirerodandHRplates/sheets.Thepublic...

JSW Steel (JSTL) posted result which was below our as well as street estimates due to weak sales volume and realization. On a standalone basis, EBITDA fell 44% qoq (down 59% yoy) to Rs8.8bn (our estimate Rs10.3bn). Steel sales volume at 2.55mn tonnes decreased 16% yoy and 20% qoq (our estimate 3mn tonnes) due to plant shutdowns. APAT at Rs14.5bn (up 182% yoy; up 307% qoq) was higher than our estimate due to tax credit to the tune of Rs17.9bn. PBT loss of Rs3.3bn was higher than our estimate of a loss of Rs1.8bn. Going forward, while we do see an improvement in EBITDA/tonne, on the back of lower raw material prices,...

JSW Steel (JSTL) reported an improved performance (standalone EBITDA/t Rs 4,555, 4.3% QoQ, -43% YoY, estimate Rs 3,689). Realisations dropped ~6% QoQ (Rs 30,259, -21.8% YoY) on expected lines.

9 Volume (production: 13.4mn tonnes; sales: 12.9mn tonnes) guidance maintained despiteweakdemandenvironmentandhigherimports 8 Netdebtincreasedby~Rs11bntotouchRs390bn...