JSW Steel aims to increase its total installed capacity to 43.5 mtpa by H1 FY28 and further raise it to 51 mtpa by FY31.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
We are initiating coverage on JSW Steel Ltd. with a 'Reduce' rating and target price of Rs 950 valuing at 7.6x FY27E EV/Ebitda basis. JSW Steel has become India's largest producer of steel, boasting an installed capacity of 35.7 mtpa as of end-Q3 FY25.
The company aims to increase its total installed capacity to 43.5 mtpa by H1 FY28 and further raise it to 51 mtpa by FY31.
The management targets a consolidated sales volume of ~27 metric tonne in FY25. We believe that the ramp-up of the newly commissioned 5 mtpa Vijayanagar and 1.5 mtpa BPSL expansions will enhance the topline, while improvements in the product portfolio through a greater proportion of value-added & specialty products will support margins. Q3 FY25 witnessed the best-ever domestic quarterly sales volume.
Though we like the company's volume expansion plan, product mix improvement initiatives and raw material securitization, we await better entry levels. We expect Revenue/Ebitda/profit after tax compound annual growth rate of 12/18/32% over FY25-27E. Initiate ‘Reduce' rating.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
