Hold JSW Steel, target price Rs 210: ICICI Direct

ICICI Direct has given a hold rating to JSW Steel with a target price of Rs 210. The share price moved up by 1 per cent from its previous close of Rs 290.65. The stock’s last traded price is Rs 293.55.

JSW Steel Ltd., incorporated in the year 1994, is a Large Cap company (having a market cap of Rs 70389.46 Crore) operating in Metals - Ferrous sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 11454.00 Crore, down 34.76 % from last quarter Sales of Rs 17556.00 Crore and down -40.98 % from last year same quarter Sales of Rs 19407.00 Crore Company has reported net profit after tax of Rs 529.00 Crore in latest quarter.

Investment Rationale
For Q2FY21, the brokerage expects JSW Steel's standalone sales volume to increase 42.9% QoQ and 11.1% YoY to 4.0 MT. For the quarter, it expects JSW Steel to report a consolidated topline of Rs 18331 crore, up 55.6% QoQ and 7.2% YoY, while consolidated EBITDA is likely to come in at Rs 3525 crore, up 162.9% QoQ and 55.6% YoY. JSW Steel is likely to report EBITDA/tonne of Rs 9000/tonne (Rs 6472/tonne in Q2FY20 and |5104/tonne in Q1FY21). Consolidated EBITDA margin is likely to come in at 19.2% (13.2% in Q2FY20 and 11.4% in Q1FY21)

Promoter/FII Holdings
Promoters held 60.48 per cent stake in the company as of March 31, 2020, while FIIs held 13.40 per cent, DIIs 12.35 per cent and public and others 13.77 per cent.