CLSA raises JSW Steel price target to INR880, maintains underperform

Published 26/05/2025, 06:00
CLSA raises JSW Steel price target to INR880, maintains underperform

On Monday, CLSA analyst Indrajit Agarwal updated the firm’s outlook on JSW Steel Ltd (NSE:JSTL:IN), increasing the price target to INR880 from the previous INR825. Despite the higher price target, the analyst maintained an Underperform rating on the stock.

The adjustment comes after JSW Steel reported a 4% year-over-year increase in fourth-quarter consolidated EBITDA to Rs63 billion, which aligned with consensus estimates. The company’s standalone EBITDA per tonne saw a quarterly rise of Rs918 to Rs8,783. Looking ahead, the first quarter’s profitability is expected to see a substantial boost, attributed to rising steel prices and decreasing costs for coking coal.

JSW Steel has provided guidance for production to grow by approximately 2.7 million tonnes year-over-year, primarily due to the ramp-up of its Jindal Vijayanagar Steel Ltd (JVSL) operations, which is expected to produce 5 million tonnes. However, this increase may be partially mitigated by planned shutdowns. The management has refrained from commenting further on Bhushan Power and Steel Limited (BPSL), as the matter is currently sub judice.

While JSW Steel’s net debt experienced a slight quarter-over-quarter decrease, CLSA anticipates it will remain stable year-over-year in FY26 before beginning to decrease in subsequent years. The firm’s decision to maintain an Underperform rating is based on what it considers to be an elevated valuation of JSW Steel’s shares, even though the price target has been raised.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.