JSW Steel shares jumped over 4 per cent to hit intraday high of Rs 914.80 on Monday as the company sounded optimistic about its future growth.
JSW Steel, which reported 87 per cent annual decline in its net profit for the January-March quarter to Rs 62.38 crore expects to increase its steel production volume by 6 per cent to 13.40 million tonnes (MT) in FY2015-16 from 12.36 MT in 2014-15.
JSW Steel's crude steel production volume fell 3 per cent annually in the March quarter to 3.06 MT and for the fiscal year 2014-15 it grew 4 per cent to 12.63 MT.
The company has planned a capex of Rs 9,000 crore for the next two years with brownfield expansion worth Rs 5,200 crore in the current fiscal year.
Of the total Rs 9,000 crore capex, the company will be spending Rs 5,200 crore in the current financial year. Of this amount, Rs 1,700 crore will be via internal accruals and balance Rs 3,200 crore will be met through debt.
Brokerages are also bullish on the stock. Domestic brokerage Motilal Oswal Securities maintains buy on the stock with a target of Rs 1,088 per share, indicating potential upside of 24 per cent from Friday's closing price.
International brokerage firm Macquarie also maintained its buy rating on the stock with a target price of Rs 1,039 apiece. Macquarie says JSW Steel is best placed against strong headwinds.
JSW Steel has underperformed the broader indices over last one year by falling over 23 per cent compared to 15 per cent gain in the Nifty.
Shares of JSW Steel ended 4.06 per cent higher at Rs 911.85 apiece, outperforming the broader Nifty, which ended with 1.34 per cent gains.
(With PTI inputs)
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