JSW Steel, Tata Steel jump up to 4% on CLSA TP upgrade

NEW DELHI: Shares of steelmakers Tata Steel and JSW Steel climbed up to 4 per cent on Thursday after foreign brokerage CLSA raised target price for both the stocks.

CLSA has raised target for Tata Steel to Rs 710 from Rs 570 earlier. The stock closed at Rs 498.95, up 1.61 per cent.

For JSW Steel, the brokerage raised its target to Rs 300 from Rs 185 earlier. The stock closed at Rs 199, up 1.89 per cent.

The foreign brokerage has raised FY19-20 EPS estimates for JSW Steel by 31 per cent-44 per cent, saying that the company could be a big beneficiary of improving demand-supply scenario in India. CLSA said that there is a potential for valuation expansion on the counter.

On Tata Steel, it said that the probability of hiving-off Europe business into a SPV with Thyssenkrupp has risen, adding that Tata Steel Europe outlook has improved after the sale of loss making units. Outlook for the Indian business is also improving for Tata Steel, CLSA said, expecting the company to see a 17 per cent CAGR growth in EPS over FY17-20.