Buy JSW Steel, target price Rs 1,230: ICICI Securities

ICICI Securities has a buy call on JSW Steel with a target price of Rs 1230. The current market price of JSW Steel Ltd. is Rs 1058.95. JSW Steel, incorporated in 1994, is a Large Cap company with a market cap of Rs 258851.30 crore, operating in Metals - Ferrous sector.

JSW Steel Ltd. key Products/Revenue Segments include Hot Rolled Coils/Plates/Sheets, Rolled Product, Coils (Cold Rolled), Coils & Sheets (Galvanised), Iron Ore, Others, Billets & Blooms, Other Operating Revenue, Color Coated Coil/Sheets, M S/S S Slabs for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 41,525 crore, up 4.24% from last quarter Total Income of Rs 39,837 crore and down -1.45% from last year same quarter Total Income of Rs 42,134.00 crore. The company has reported net profit after tax of Rs 713.00 crore in the latest quarter.

The company's top management includes Mrs.Savitri Devi Jindal, Mr.Hiroyuki Ogawa, Ms.Fiona Jane Mary Paulus, Mr.Marcel Fasswald, Mrs.Nirupama Rao, Mr.Haigreve Khaitan, Mr.Seturaman Mahalingam, Mr.Gajraj Singh Rathore, Mr.Jayant Acharya, Mr.Sajjan Jindal, Dr.B C Sateesha. Company has S R B C & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 245 Crore shares outstanding.

Investment Rationale
DGTR has recommended safeguard measures, which are fair-trade measures unlike anti-dumping or countervailing measures as they are solely for the purpose of supporting the domestic industry as an interim mechanism and the proposed duty of 12% is much lower than custom duty limit of 40% bound by India for products under investigation. The influx of imports has resulted in decline in prices and profitability for domestic steel companies. Furthermore, the influx of imports is largely due to diversion from the countries that have already imposed protectionist measures. Going ahead, domestic companies are expanding capacities and investing; domestic consumption in FY25 is expected to show double-digit growth for an unprecedented 4th year in a row. Hence, imposition of safeguard duties is needed to provide a level-playing field in the domestic market. ICICI Securities maintains a BUY on JSW Steel with a target price of Rs 1,230.

Promoter/FII Holdings
Promoters held 44.85 per cent stake in the company as of 31-Dec-2024, while FIIs owned 25.59 per cent, DIIs 10.5 per cent.