JSW Steel share price tumbles nearly 3.5% - Heres why - Brokerage recommends this
As per the companys filing, JSW Steel Limited has entered into a joint venture agreement with National Steel Holdings Limited for the purposes of establishing scrap shredding facilities in India.
JSW Steel share price slipped nearly 3.5 per cent to Rs 641.85 and Rs 642 per share on the BSE and NSE intraday, respectively, during Monday’s trading session. The company on Friday announced a JV (joint venture) agreement with New Zealand-based National Steel Holdings Limited (NSHL) in a filing.
As per the company’s filing, “JSW Steel Limited has entered into a joint venture agreement with National Steel Holdings Limited for the purposes of establishing scrap shredding facilities in India using industry-leading machinery, technical know-how, and relevant processes in a suitable manner.”
Besides, JSW Steel through another filing also said that the Competition Commission of India (CCI) has approved the proposed composite scheme of arrangement amongst JSW Steel, Creixent Special Steels, and JSW Ispat Special Products and their respective shareholders and creditors.
At around 03:00 PM, the stock was trading nearly 3 per cent to Rs 644.4 and Rs 642.15 per share on the BSE and NSE, respectively, as against over 1 per cent each fall in the Sensex and Nifty50.
JSW Steel’s share price has given a return of around 135 per cent over the last two years from Rs 281 in July 2020 to Rs 660 levels in July 2022. ICICI Direct Research maintained a Hold rating on the stock and valued JSW Steel at 6x FY24E EV/EBITDA.
JSW Steel is one of the leading integrated steel companies in India. It has a strategic collaboration with global leader JFE Steel of Japan, enabling JSW to access new and state-of-the-art technologies to produce and offer high-value special steel products to its customers.
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