Hold JSW Steel: target of Rs 1010: ICICI Securities

ICICI Securities recommended hold rating on JSW Steel with a target price of Rs 1010 in its research report dated July 19, 2025.

Broker Research

July 23, 2025 / 14:43 IST

Hold

26 Aug, 2025 12:21

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ICICI Securities's research report on JSW Steel

JSW Steel`s consolidated EBITDA beat BB consensus estimate by 5% as the overall performance in the standalone as well as the subsidiary level witnessed sharp improvement. The key driver was sequential increase of over INR 3,300 (+6%) in NSR across Indian operations coupled with lower RM costs (coking coal cost fell by USD 14/te QoQ). The operating performance would have been even better had the company not suffered one-time loss of INR 3.4bn on FX MTM on Euro loans and INR 2bn shutdown-related costs (together one-time cost impact translated to INR 800/te contraction in EBITDA). Though Q2FY26 realisations are expected to moderate, higher volumes, lower RM costs (iron ore cost to be down by INR 1,000/te) and absence of one-time hit are expected to neutralise the effect to a large extent.

Outlook

We are re-initiating coverage with HOLD rating assigning target price INR 1,010. We assign 8.0x multiple (near to 5yr mean for 1yr forward EV/EBITDA) FY27E EV/EBITDA.

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