Bhavesh Chauhan neutral on JSW Steel

Bhavesh Chauhan, Metal Analyst, Angel Broking is neutral on JSW Steel.

Chauhan told CNBC-TV18, “JSW Steel, given the current levels it has inventory to produce only probably 1-1.5 months of steel at utilization level of 80%. So, given that we also believe that it will take atleast 4-5 months for category “A” mines to start production. So, we believe that going forward probably in the next first half of FY13 it might struggle to increase its capacity. It might not operate at capacity – around 50 or 60%. So, hence we are kind of neutral on the stock and we await further clarity on these matters from CEC.”
JSW Steel`s trailing 12-month (TTM) EPS was at Rs 90.12 per share. (Dec, 2011). The stock's price-to-earnings (P/E) ratio was 8.35. The latest book value of the company is Rs 733.06 per share. At current value, the price-to-book value of the company was 1.03. The dividend yield of the company was 1.63%.