Citigroup maintains 'sell' on JSW Steel

CMP: Rs 197.15

Target price: Rs 185

Citigroup has maintained its ���sell��� rating on JSW Steel while cutting its target price to Rs 185 from Rs 190. ���We are revising our estimates to account for lower raw material prices, domestic realisation, revised volumes and capex, and weaker performance by the US subsidiary,��� the investment bank said in a report.

���The benefit of lower raw material prices is largely offset by weaker prices,��� it said. ���We expect total net debt-equity ratio by March 2009 to be approximately 2x (times), making JSTL (JSW Steel) riskier in a downturn,��� Citi added.