Should you buy, sell, or hold JSW Steel? Here's what brokerages suggest

JSW Steel share price NSE: Shares of JSW Steel slipped in morning trade despite the private steelmaker reporting a consolidated net profit of Rs 2,773 crore for the July–September quarter on the back of higher income and exceptional gains. The company suffered a consolidated net loss of Rs 915 crore in the second quarter of the last financial year. JSW Steel shares slipped as much as over one per cent to touch the day's low of Rs 760.05 on NSE.

JSW Steel's total income increased to Rs 44,821 crore in the second quarter of the current fiscal as against Rs 41,966 crore a year ago, JSW Steel said in a regulatory filing. JSW Steel's expenses were lower at Rs 40,801 crore in the quarter under review compared to Rs 43,354 crore in the year-ago quarter. In a statement, the company said its capex spend during the second quarter of 2023–24 (FY24) in India was Rs 3,701 crore and, at the consolidated level, it was Rs 3,816 crore.

During the first half of 2023–24, the capital expenditure in India was Rs 7,795 crore and consolidated at Rs 7,996 crore, against the planned capex spend of Rs 18,800 crore in India and Rs 20,000 crore consolidated for FY24. The company produced 6.34 million tonnes (MT) of crude steel in July-September 2023, up 12 per cent compared to 5.66 MT in the same quarter of FY 2022-23.

The company's sales increased by 10 per cent to 6.34 MT in the quarter from 5.74 MT a year ago. Exports, at 0.69 MT constituted 11 per cent of sales from Indian operations. The company had taken certain maintenance shutdowns at Indian operations during the quarter, and the average capacity utilisation was 89 per cent. The capacity utilisation was lower at Ohio, US, operations due to adverse market conditions, JSW Steel said. Read more

JSW Steel share price target: Should you buy, sell, or hold? Here's what brokerages suggest:

CLSA has upgraded JSW Steel to 'underperform' from 'sell' and has raised the target price by Rs 70 to Rs 765 from Rs 695. Morgan Stanley has maintained an 'underweight' rating for the company. The global brokerage has placed the target price at Rs 585. Jefferies has continued the 'underperform rating but has raised the target to Rs 630 from Rs 580 on JSW Steel.  Standalone EBITDA/t rose to a 6-quarter high on lower cooking coal prices and operating leverage benefit, the note added.

The brokerage expects quarterly EBITDA/t to moderate in 2H vs @Q on higher cooking coal prices. Macquarie has maintained a 'neutral' call with a target price of Rs 841. On the contrary, Citi has maintained a 'sell' call on the counter. The brokerage had reduced the target to Rs 600 from Rs 650.

(with PTI inputs)

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