Sell JSW Steel, target Rs 965: CLSA

CLSA maintains sell rating on JSW Steel as risk to reward ration looks unfavourable, but raised its 12-month target price to Rs 965 from Rs 850 earlier.

The global steel prices corrected again and the focus now shifts to MIP extension. The global brokerage firm sees a modest 8 per cent upside even if MIP is extended into FY18.

Indian steel prices and JSW's margins to drop in FY18 as MIP extension looks unlikely. If MIP gets extended through FY18, fair value would rise to Rs1,408.