JSW Steel Gets 'Buy' From Motilal Oswal On Strong Growth Outlook, Says Muted Pricing A Near-Term Headwind

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Motilal Oswal Report

Despite near-term headwinds from declining metal prices, JSW Steel Ltd.’s expansion positions it well for long-term growth, which will support volume growth of 8-10% YoY for FY26-27E.

Considering the healthy realization and muted input costs, Ebitda is likely to clock a ~15% CAGR by FY27E. We expect JSW Steel to generate strong cash flow, which can be utilized to fund the expansion plan and for deleveraging.

At current market price, JSW Steel trades at 6.7 times FY27E EV/Ebitda and we maintain our FY26/FY27 estimates.

We reiterate our Buy rating on the stock with a target price of Rs 1,150 (premised on 7.5x EV/Ebitda on FY27 estimate).

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