JSW Steel Ltd. share price target

JSW Steel (JSTL)'s 1QFY22 result was strong, with consol. EBITDA/PAT growing 22%/38% QoQ to INR102.7b/INR59.0b on higher steel prices. Standalone EBITDA/t was the highest ever at INR26,291. We expect margins to have peaked out during the quarter; however, overall earnings should remain strong, driven by volume growth. We raise our FY22E/FY23E EBITDA by 11%/8% to factor in better pricing. Maintain Buy....

JSW Steel's recent acquisitions, capacity expansion plans, rising steel demand and hike in government infrastructure expenditure to aid company's growth prospects in the long-term. Given balanced riskreward post recent rally in stock price, we maintain our HOLD rating with revised target price of Rs. 741 based on 7.5x FY23E EV/EBITDA. Strong demand continues to drive growth JSW Steel reported consolidated revenues of Rs. 26,934cr (+23.2% QoQ, +50.6% YoY), supported by strong demand in both Indian and international markets and rise in steel prices. Domestic crude steel production volumes went up to 4.2MT, a rise of 2.7% QoQ,...

in operating profit to Rs 8,440.00 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 49.27% to 33.60%. Purchase of finished goods cost rose from 0.50% to 0.65%. Employee cost decreased from 4.02% to 2.39%. Other expenses rose from 29.58% to 32.47%. Cost of Sales fell from 58.35% to 39.59%. Inventories cost rose from...

For FY22E, for the standalone entity the company has given sales volume guidance of 17.4 million tonnes (MT), of which existing operations will contribute sales volume of 16 MT, while the Dolvi Phase 2 expansion (whose full integrated operations are likely to be commissioned in September 2021) will contribute the balance 1.4 MT. In addition, JSW Steel US Ohio sales volume guidance for FY22E is 1 MT. Of the joint control and associate companies, for FY22E the sales volume guidance for Bhushan Power and Steel is 2.6 MT and JSW Ispat Special Products is 0.63 MT. Subsequently...

JSW Steel's (JSW) Q4FY21 EBITDA was a beat. EBITDA jumped 184% YoY at Rs84 bn mainly on sharp increase in realization; sales volumes grew 11% YoY to 4 mn tonnes. Despite cash outflows of Rs150 bn during FY21 (related to Bhushan Power acquisition...

We are raising our FY22-23E EPS for JSW Steel (JSTL) by 42-48% to factor in improved Steel price outlook and accretion from the acquired assets of Bhushan Power and Steel (BPSL). We reiterate a Buy on JSTL as the best play on volume growth in the Indian Steel sector. Over FY21-23E, we estimate 16% volume CAGR (excluding BPSL), which should drive 22%/37% EBITDA/EPS CAGR. We also estimate net debt to fall by 26% over FY21-23E to INR483b (1.7x FY23E EBITDA) despite an ongoing capex program to expand its upstream and downstream Steel capacities....

We expect JSW to benefit from demand growth in the coming months. However, moderation in prices and export volumes may impact performance. Hence, we retain our HOLD rating on the stock with a rolled forward target price of Rs. 404 based on 6.0x FY23E EV/EBITDA. Strong steel demand drives topline growth Consolidated revenues for Q3FY21 surged 13.5% QoQ to Rs. 21,859cr (+21.1%YoY) aided by robust pickup in economic activities. Domestic steel demand saw a sharp recovery particularly from automotive, machinery, construction and infrastructure...

JSW Steel Ltds better-than-expected December quarter show was largely lifted by firm domestic steel demand, which pushed steel realizations up. JSW steel consolidated net sales increased by 21% to Rs 21859 crore for the quarter ended Dec20 compared to corresponding previous year period. Saleable Steel sales for the quarter stood at 3.95 million tonne. The OPM increased 1360 bps to 27.2%. Thus the operating profit rose by 143% to Rs 5946 crore. Other income rose 16% to Rs 147 crore in Q3FY'21 compared to Rs 127 crore in Q3FY'20 while interest cost was down 8% to Rs 977 crore. Depreciation...

JSW Steel reported a healthy set of Q3FY21 numbers wherein topline, EBITDA and PAT came in higher than our estimate. On a standalone basis, the company reported sales volume of 3.9 million tonnes (MT) (down 3% YoY, 5% YoY), broadly in line with our estimate of 4.0 MT. Standalone EBITDA/tonne came in at | 14444/tonne, higher than our estimate of | 13000/tonne (| 10136/tonne in Q2FY21, | 5598/tonne in Q3FY20). Consolidated topline came in at |21859 crore (up 13% QoQ, 21% YoY), higher than our estimate of | 20857 crore. Consolidated EBITDA came in at...

JSW Steel's (JSW) Q3FY21 operating result was in line with our expectation. Its standalone EBITDA/tonne increased to Rs14,444 (+154% YoY, +118% QoQ) led by higher steel prices, better product mix and inventory liquidation. However, sales volumes declined 3.2% YoY to 3.9 mn tonnes as shortage of iron ore persisted. Consolidated net...