JSW Steel share price slips over 4% on poor Q2 numbers; Credit Suisse downgrades

JSW Steel share price slipped over 4 percent intraday on October 26 after the company posted result for the quarter ended September 2020.

The company consolidated net profit fell 37.1 percent YoY at Rs 1,595 crore against Rs 2,536 crore in the same quarter last year.

Revenue of the company was up 9.6% at Rs 19,264 crore versus Rs 17,572 crore, reported CNBC-TV18.

Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) jumped 61.6% at Rs 4,414 crore versus Rs 2,731 crore and Margin was up at 22.91% versus 15.54%.

Credit Suisse

The research house has downgraded the stock to neutral from outperform but raised the target to Rs 300 from Rs 200 per share. It has increased H2 realisations & incorporate the latest coking coal forecasts.

The FY21 EPS estimates rise to 19% and do not see risk-reward favourable anymore, reported CNBC-TV18.

CLSA

CLSA has maintained sell call and raised the target to Rs 245 from Rs 220. It expects the margin to peak in Q3 & then taper down. The stock trading 1.6 standard above its median, reported CNBC-TV18.

Jefferies

Broking house has maintained buy call with a target at Rs 380. It has upgraded FY21-23 EPS estimates by 10-69% and expects the margin to expand further from Q2 level.

The realisations are likely to improve as a benefit of higher spot & contract prices flows, reported CNBC-TV18.