Buy JSW Steel, target price Rs 824: Centrum Broking

Centrum Broking has buy call on JSW Steel with a target price of Rs 824. The current market price of JSW Steel Ltd. is Rs 679.6.

Time period given by analyst is one year when JSW Steel Ltd. price can reach defined target.

JSW Steel Ltd., incorporated in the year 1994, is a Large Cap company (having a market cap of Rs 158811.38 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), Billets & Blooms, Iron Ore, Others, Other Operating Revenue, M S/S S Slabs for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 33449.00 Crore, up 14.95 % from last quarter Total Income of Rs 29100.00 Crore and up 72.28 % from last year same quarter Total Income of Rs 19416.00 Crore. Company reported net profit after tax of Rs 6576.00 Crore in latest quarter.

Investment Rationale
JSTL’s consolidated EBITDA, at Rs104bn, up 1.4% QoQ was in-line with expectations, standalone numbers (EBITDA of Rs86.7bn, down 9% QoQ) disappointed us due to higher-than-expected production cost. The performance of its subsidiaries have improved QoQ. JSTL now holds 83.28% stake (earlier 49% stake) in Bhushan Power via SPV and will be consolidated from Q3FY22.

Promoter/FII Holdings
Promoters held 44.09 per cent stake in the company as of 30-Sep-2021, while FIIs owned 12.17 per cent, DIIs 8.05 per cent.