you are here: HomeNewsBusiness

Reduce JSW Steel target of Rs 335: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on JSW Steel with a target price of Rs 335 in its research report dated January 24, 2021.

January 28, 2021 / 07:03 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on JSW Steel


JSW Steel (JSTL) posted Q3FY21 EBITDA 7% below our estimates due to lower than expected costs. However, earnings were above consensus estimates by 10%. Steel prices soared nearly 55% over last six months on back of strong pentup demand and severe supply constraints. Supplies are coming back strongly as visible in increasing production levels month after month. Softening in demand and revival in supplies poses strong headwinds to prices. Hence, we believe that global prices have peaked out as visible in above mean spreads.


Outlook


We maintain our negative outlook on the stock due to stretched valuations (EV/EBITDA of 6x FY22e) and peaked out margins. We maintain Reduce with TP of Rs335 (earlier Rs380), EV/EBITDA of 5.75x FY22e.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jan 28, 2021 07:03 am

stay updated

Get Daily News on your Browser
Sections