Hold JSW Steel, target price Rs 757: Anand Rathi

Anand Rathi has hold call on with a target price of Rs 757. The current market price of JSW Steel Ltd. is Rs 687.4. Time period given by analyst is one year when JSW Steel price can reach defined target.

JSW Steel Ltd., incorporated in the year 1994, is a Large Cap company (having a market cap of Rs 166546.49 Crore) operating in Metals - Ferrous sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 27095.00 Crore, up 23.13 % from last quarter Total Income of Rs 22006.00 Crore and up 50.45 % from last year same quarter Total Income of Rs 18009.00 Crore. Company reported net profit after tax of Rs 4179.00 Crore in latest quarter.

Investment Rationale
The brokerage has increased FY2022- FY2023 earnings estimate to factor in higher EBITDA margin given higher-than-expected margin performance in Q4FY2021. Earnings outlook for the steel sector has improved as profitability is expected to increase, led by higher steel spreads and sharp recovery seen in domestic steel demand. It continues to monitor the performance and despite a healthy growth in recent quarters, maintain a HOLD rating on the stock with a revised target price of Rs. 757 based on 7x FY23E EV/EBITDA.

Promoter/FII Holdings
Promoters held 44.1 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.8 per cent, DIIs 6.8 per cent and public and others 35.3 per cent.