
JSW Steel: Buy or sell? Jefferies sees 15% upside, CLSA remains cautious despite Q1 profitability boost
Brokerages are divided in their views on JSW Steel after the company reported a solid performance in Q1FY26, with rising profitability supported by higher realizations and lower input costs. While Jefferies maintains a bullish stance, CLSA remains cautious, flagging limited near-term upside despite operational tailwinds. Jefferies – Buy | Target: ₹1,200 | Upside: 15%
Jefferies maintained a Buy rating on JSW Steel, projecting a 15% upside from the current market price of ₹1,044.80. The brokerage highlighted a strong Q1FY26, where EBITDA rose 37% YoY and 19% QoQ, beating their estimates by 5%. EBITDA per tonne jumped 33% sequentially to ₹11,300, driven by higher realizations .
Volumes grew 9% YoY , indicating strong demand traction.
Jefferies expects margins to contract in Q2, as Indian spot steel prices are 4% below Q1 averages, but sees this as a temporary dip.
The brokerage also noted that Asian steel spreads are 30% below long-term averages, meaning any recovery could significantly improve profitability. Over the medium term, Jefferies expects a 9% volume CAGR in India between FY25–27, even after trimming FY26–28 EPS estimates by 3–9%. CLSA – Underperform | Target: ₹890 | Downside: 15%
In contrast, CLSA retained its Underperform rating, with a target price of ₹890, implying a 15% downside. While the firm acknowledged that Q1 EBITDA was largely in line, with standalone EBITDA/t improving by ₹1,835 to ₹10,618, it remained cautious on valuation and long-term visibility. Profitability in Q1FY26 was aided by higher steel prices and lower coking coal costs .
Despite a recent dip in steel prices, CLSA expects Q2 earnings to stay stable , supported by continued low input costs and the fading out of FX/shutdown-related expenses .
However, the brokerage stressed that macro triggers and expansion project execution will be key to driving sustainable earnings. Brokerage Summary: Brokerage Rating Target Price (₹) Implied Move from CMP (₹1,044.80) Jefferies Buy 1,200 +15% CLSA Underperform 890 –15% Verdict: A split call on valuation vs growth
While Jefferies sees strong volume growth potential and a favourable cost structure as reasons to stay bullish, CLSA remains cautious due to valuation concerns and execution risks tied to macro and expansion factors. Investors may want to monitor steel price trends, coal input costs, and expansion project updates closely in the coming quarters.
Disclaimer: The brokerage views expressed are based on publicly available research reports and do not constitute investment advice. Readers should consult a certified financial advisor before making any investment decisions.
Ahmedabad Plane Crash
News desk at BusinessUpturn.com

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Business Upturn
22 minutes ago
- Business Upturn
CLSA bullish on Dixon Technologies, highlights Vivo JV and margin expansion; maintains Rs 19,365 target
CLSA has reiterated its High Conviction Outperform rating on Dixon Technologies and assigned a target price of ₹19,365 per share, implying a 20% upside from the current market price of ₹16,110.00. The brokerage noted that Dixon's Q1 results came in above expectations, reinforcing confidence in the company's growth outlook. CLSA highlighted that Dixon has reiterated its FY26 smartphone shipment guidance at 41–43 million units, a significant jump from 28 million units achieved in FY25. According to the report, future growth drivers include the recently announced Vivo joint venture , growing exports, and expansion in other verticals. CLSA expects Dixon's component manufacturing ramp-up to contribute meaningfully to margin expansion—even after the PLI benefits phase out in FY27. With strong visibility across business segments and operating leverage in play, CLSA remains bullish on Dixon's medium-term prospects. Disclaimer: The brokerage views expressed above are those of CLSA. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Ahmedabad Plane Crash News desk at


CNBC
an hour ago
- CNBC
The most powerful passports of 2025: The US and the UK fall, while India rises
Singapore has the world's strongest passport — again, according to the latest Henley Passport Index. The ranking, released Tuesday, shows the small nation-state retaining the top spot in the index, after it broke a six-way tie for the accolade earlier this year. In 2024, Singapore shared the top ranking with Japan, Germany, Italy, Spain and France. The latest ranking shows Japan and South Korea tied for second place, with the other former No. 1 contenders tied for third place with Denmark, Finland and Ireland. The Henley Passport Index is a widely followed ranking of global passports, which assesses passport strength by one metric — the number of destinations holders can visit without needing to obtain a visa. The index ranks countries according to data provided by the International Air Transport Association, it said. The ranking focuses mainly on ease of travel, while another ranking closely monitored by CNBC Travel, the Nomad Passport Index, ranks passports by five criteria, including taxation, and is more focused on global citizenship. Henley's latest ranking shows the U.S. passport slipping to 10th place from United Kingdom's passport also moved down the list, landing in sixth place from fifth, it showed. This represents a continuation of a "long-term downward trend" for the two countries — both of which were once considered the most powerful passports in the world, according to Henley & Partners. "Notably, the U.S. is now on the brink of exiting the Top 10 altogether for the first time in the index's 20-year history," the company said in a statement. The top 10 list shows a ranking mostly dominated by European countries, but led by three key Asian economies: 1 Singapore 2. Japan2. South Korea3. Denmark3. Finland3. France3. Germany3. Ireland3. Italy3. Spain4. Austria 4. Belgium4. Luxembourg4. Netherlands4. Norway4. Portugal4. Sweden5. Greece5. New Zealand5. Switzerland6. United Kingdom7. Australia7. Czechia 7. Hungary7. Malta7. Poland8. Canada8. Estonia8. United Arab Emirates9. Croatia9. Latvia9. Slovakia9. Slovenia10. Iceland10. Lithuania10. United States Singaporeans can access 193 countries without needing a visa, while the countries tied for the 10th spot can access 182, according to the ranking. India's passport jumped the most of any country in the past six months, rising to 77th from 85th, according to Henley & Partners. An analysis of the ranking over the past decade showed the UAE rising 34 places in the ranking, the company said. It is the only "big riser" to break into the top 10 during this time, it said. China also rose 34 spots in the past 10 years, the company said, a move it called "particularly impressive" considering that China doesn't have visa-free access to Europe's Schengen Area. Afghanistan's passport remained in last place on the list, granting visa-free access to just 25 countries worldwide, the company said.


Business Upturn
2 hours ago
- Business Upturn
Last day to buy shares of Cholamandalam Investment & Finance, CG Consumer, Hero MotoCorp, and others to be eligible for dividend
This week marks an important window for investors looking to secure dividends from several prominent Indian companies. Shares of Cholamandalam Investment & Finance, Crompton Greaves Consumer Electricals, and Hero MotoCorp among others will trade ex-dividend this week, as per data from BSE. The ex-dividend date is the day when the stock starts trading without the value of its next dividend. Investors who purchase shares on or after the ex-dividend date are not eligible for the declared dividend, while those who own the stock before this date remain entitled to it. Here's a day-wise list of notable companies whose shares will turn ex-dividend this week: Monday, July 21, 2025 Acceleratebs India Anupam Rasayan India OCCL Orient Bell Shree Cement Thangamayil Jewellery Windlas Biotech Tuesday, July 22, 2025 Happy Forgings Hind Rectifiers Menon Pistons SIL Investments Siyaram Silk Mills Strides Pharma Science Voltamp Transformers Wires & Fabriks SA Wednesday, July 23, 2025 Aditya Birla Sun Life AMC Advanced Enzyme Technologies Banswara Syntex Bhatia Communications & Retail D B Corp EL CID Investments Greaves Cotton Heritage Foods K P R Mill Mahindra Logistics Metal Coatings India NESCO Novartis India Pidilite Industries Precision Camshafts Route Mobile Sonata Software Thursday, July 24, 2025 Cholamandalam Investment & Finance Company Crompton Greaves Consumer Electricals Hero MotoCorp 20 Microns Birlanu Bliss GVS Pharma Fiem Industries Hatsun Agro Product IVP Paushak Privi Speciality Chemicals Radico Khaitan Sanco Trans TCPL Packaging Friday, July 25, 2025 Some of the major names: 3M India Abbott India Akzo Nobel India Arvind Divis Laboratories Fortis Healthcare GMM Pfaudler Info Edge (India) Jubilant Ingrevia KEC International Life Insurance Corporation of India (LIC) Lupin Nelcast Union Bank of India Zydus Lifesciences Investors aiming to receive these dividends should ensure they purchase shares at least one trading day before the ex-dividend date. This is crucial because settlement in India follows the T+1 cycle, which means shares bought on the ex-date won't reflect in your account in time to qualify. With many blue-chip and mid-cap companies declaring dividends this season, market watchers see it as an opportunity for investors to lock in steady returns. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.