JSW Steel shares headed toward record high, top Sensex gainer today; key details

Shares of JSW Steel Ltd rose the most on Sensex today amid a rally in the broader market. JSW Steel stock climbed 3.3% to Rs 847.70 against the previous close of Rs 820.60 on BSE. A total of 0.70 lakh shares of the firm changed hands amounting to a turnover of Rs 5.91 crore on BSE. Market cap of the firm rose to Rs 2.05 lakh crore on BSE.

The stock hit a record high of Rs 895.60 on December 28, 2023 and a 52 week low of Rs 649.75 on March 16, 2023.

The metal stock has clocked 6% returns in the last six months. This year, the stock has shed 4.03%. However, the steel sector stock has climbed 113% in three years.

Centrum Broking has a target of Rs 868 for the JSW Steel stock.

"JSW is on verge of commissioning 5mtpa and 1.5mtpa capacity expansion at Vijaynagar and BPSL by Q4FY24 end. We maintain ADD rating and target price at Rs 868, valuing at 6.5x FY25/FY26 average EV/EBITDA (Earlier: Rs 869/share),” said the brokerage.

JSW Steel reported a stellar set of earnings in Q3. Consolidated net profit zoomed five times to Rs 2,415 crore in the December 2023 quarter. Consolidated revenue from operations surged 7.2 per cent year-on-year (YoY) to Rs 41,940 crore during the third quarter.

Axis Securities has a target price of Rs 1,030 for JSW Steel stock.

"By FY25, the company plans to expand its capacity to 38.5 MTPA. It will be expanding its largest single location steel plant in Vijayanagar, Karnataka from the current 12.5 MTPA capacity to 19.5 MTPA by FY25. JSW Steel plans to expand its steel production to 50 MTPA by end of this decade by entailing total capex of Rs 1 Lc Cr. The company is trading at 12 Month Forward P/B of 2.5x (long term average of 1.6x)," said the brokerage.

In terms of technicals, the relative strength index (RSI) of the stock stands at 51.3, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 10 day, 20 day, 50 day 100 day, 150 day and 200 day moving averages.

Crude steel output, on a consolidated basis rose over 10 per cent YoY to 6.87 million tonne, while sales volume increased 5 per cent to 6 million tonnes. The company is on track to meet the guided crude steel production of 26.34 million tonnes and sales of 25 million tonne, it said.

EBITDA fell 9% to Rs 7,180 crore in Q3 sequentially amid lower sales volumes, higher iron ore, and coking coal costs.

EBITDA margin in the December quarter stood at 17.1 per cent. Steel sales climbed 7 per cent YoY to 6MT and domestic sales rose 2% (YoY) to 5.27 MT.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions

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