HSBC sets JSW Steel price target at Rs 1370/sh

MUMBAI: HSBC has retained Neutral view on JSW Steel after it acquired stake in Ispat Industries. It has set a price target of Rs 1370 per share on the stock.

“We value JSW Steel on FY12e EV/EBITDA of 6.5x. Our target price for JSW Steel is Rs 1,370 includes Rs 1,836/share in the standalone entity, Rs 22/share in stake in JSW Energy, - 129/share in value accretion from acquisition of US subsidiary and Rs 354/share in net debt. With a 15.4% potential upside including dividend yield, we rate the stock Neutral,” the report said.