PINC Research has recommended a hold rating on JSW Steel in its May 14, 2008 research report. "JSW Steel Ltd. (JSW) posted disappointing results for Q4FY08 as soaring raw material prices resulted in OPM plunging by over 1,000bps on YoY basis, to 22.6%. However, higher realisations and increased volumes boosted net sales which registered a 26% YoY growth (excluding SISCOL nos). SISCOL added another Rs 10.6 billion to the topline and Rs 660 million at the PBT level for the whole of FY08 (reflecting only in Q4FY08 results)."

"We believe that the company would continue to bear the brunt of high raw material prices in FY09 and FY10 and hence its margins could shrink further if it is unable to pass the same to the end users. However, increased volumes would help maintain profit and hence, we recommend a ‘HOLD’ on stock," says PINC's research report.

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