JPMorgan raises JSW Steel stock price target to INR1,100 on strong EBITDA

Published 21/07/2025, 06:00
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Investing.com - JPMorgan has raised its price target on JSW Steel Ltd (NSE:JSTL) to INR1,100.00 from INR1,085.00 while maintaining an Overweight rating on the stock.

The adjustment follows JSW Steel’s impressive 37% year-over-year and 19% quarter-over-quarter growth in consolidated EBITDA for the first quarter of fiscal year 2026, which exceeded both JPMorgan’s and Street expectations by 8% and 4% respectively.

The better-than-expected performance was largely driven by improved operations in the United States, where average selling prices and EBITDA improved following U.S. tariffs, along with lower expenses in India standalone operations due to reduced mining royalties after surrendering the Jajang iron ore mine.

JPMorgan notes that while steel prices have softened in the second quarter, the impact should be largely offset by further reductions in coking coal costs, some decline in iron ore costs after NMDC (NSE:NMDC)’s 9% price cut, higher volumes quarter-over-quarter as planned shutdowns are completed, and relatively stable foreign exchange rates.

JSW Steel has reiterated India’s steel consumption growth expectations of 8.5-9.5% year-over-year for fiscal year 2026, with the company expecting to outpace the industry with guidance of 10.4% year-over-year sales growth, while ongoing projects are expected to deliver further cost savings over the medium term.

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