JSW Steel Ltd. share price target

JSW Steel's manufacturing unit in Vijayanagar, Karnataka is the largest single location steel-producing facility in India with a capacity of 12 MTPA JSW Steel is the only Indian steel company to be ranked among the top 10 global steel producers by World Steel Dynamics for 10 consecutive years...

Despite inflationary input cost pressures, the company is expected to benefit from both, rising prices and a steady demand for steel. We feel JSW Steel is strategically placed to benefit from the current trends in the marketplace and poised to deliver robust performance in the coming quarters. We hereby upgrade our rating to BUY with revised target price of Rs. 803 based on 6.5x FY23E EV/EBITDA. Robust topline performance on price hikes Consolidated revenue surged 68.7% YoY to Rs. 32,503cr (+12.5% QoQ), supported by...

Minority interest increased 350% to Rs 9.00 crore. Net profit attributable to owners of the company increased 350.09% to Rs 7,170.00 crore. During the quarter, JSW Steel operated at a healthy capacity utilization of 91% across its steelmaking operations. Saleable Steel sales for the quarter stood at 3.83 million tonne (Indian operations excluding JVs), an increase of 10% QoQ. As a result, the company registered its highest ever consolidated quarterly operating EBITDA of Rs 10,417 crore, with an EBITDA margin of 32.0%. In the month of October`21, the company commenced integrated operations of its 5 MTPA brownfield expansion at Dolvi. For year-to-date (YTD) results analysis...

JSW Steel (JSW) reported highest ever EBITDA (in line with our estimate) of Rs104 bn (+1.4x YoY) in Q2FY22. The key positives were: 1) share of value added products remained high at 60% (61% in Q1FY22, 51% in Q2FY21) driven by increased domestic sales to automotive, solar and appliance segments and 2) there was higher usage of...

Q2FY22 Results: Indian Hotels witnessed a sharp rebound in Q2FY22; revenue reached 72% of pre-Covid levels. Indian Hotels' revenues for Q2FY22 were up 184% YoY, 111% QoQ to | 728.4 crore. EBITDA came in at | 72.8 crore and net loss reduced to | 120.6...

Bhushan power and steel (BPSL) become subsidiary (83% stake) in October with conversion of OFCDs. It posted EBITDA/t of Rs23,000 in the quarter. Steel (JSTL) reported Q2FY22 EBITDA in-line with our and consensus estimates. Domestic steel margins impacted due to lower realisations and...

in operating profit to Rs 10,274.00 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 54.24% to 32.65%. Purchase of finished goods cost rose from 0.01% to 0.17%. Employee cost decreased from 5.24% to 2.32%. Other expenses rose from 29.27% to 33.90%. Power and Oil fuel cost fell from 10.51% to 6.06%....

JSW Steel (JSTL) reported better than estimated earnings for Q1FY22 with a beat of 7%/14% on our and consensus estimates. Higher steel margins and better performance in domestic and overseas subsidiaries drove the beat. We increase our EBITDA estimates for FY22e/FY23e by 4.7%/17.5% to factor in higher steel margins and better profitability in subsidiaries. We expect that steel prices would structurally remain elevated in medium term as a result of inevitable policy measure undertaken by China to restrict production in order to curb alarming pollution levels. Regular monitoring of...

JSW Steel (JSW) reported highest ever EBITDA (beat to our estimate) of Rs102 bn (+6.7x YoY) in Q1FY22. Improvement in product mix and increase in usage of captive iron ore led to EBITDA beat. JSW's domestic automotive sales increased by 5x YoY, while India's automotive production grew by 3x YoY in Q1FY22. Overall, its sales volumes were higher by 29% YoY to 3.6 mn tonnes but fell 11% QoQ as second wave of Covid-19...

About the stock: JSW Steel is one of the leading integrated steel companies in India. It has a strategic collaboration with global leader JFE Steel of Japan, enabling JSW to access new and state-of-the art technologies to produce and offer high value...