JSW Steel share price: Should you Buy or Sell the stock post Q4 Results?
In 4QFY25, JSW Steel reported a decent result performance, offsetting the muted steel realizations by strong volume and deflated costs.
JSW Steel's reported consolidated consolidated net profit increased 13.5% year over year (YoY) to Rd 1,501 crore from ₹ 1,322 crore in the same period last year.
With robust domestic demand, new capacity coming on-stream, and an increasing amount of value-added products in the mix, analysts remain positive anticipating good growth prospects fo JSW Steel. The Net profits will be supported by its emphasis on enhancing coal connections and growing the captive share of iron ore.
Motilal Oswal Financial Services expect strong revenue, Ebitda or Earnings before interest tax depreciation and amortisation performance, driven by healthy volume, improving realization and muted costs. This as per MOFSL will generate more than ₹ 60,000 Crore cash flow over FY26-27, which will help JSW Steel to fund its proposed capex of ₹ 65,000 Crore during FY25-27.
At current market price JSW Steel trades at 7 times FY27estimated EV by EBITDA and MOFSL largely maintain their FY26 and FY27 EBITDA estimates. They reiterate their BUY rating on the stock with Target price of ₹ 1,190 for JSW Steel share price.
Elara Securities India Pvt Ltd - As per the brokerage higher steel prices, a tendency toward flat iron ore costs, and a probable sequential decline in coking coal prices of $ 10-15 per tonne might all help JSW Steel's Q1FY26 performance.
The completion of ongoing expansion projects, a ramp-up in capacity, and a persistent emphasis on cost reduction are probably going to be the main long-term drivers, as per the brokerage.
However, any large increase in steel prices may be constrained by the over supply of flat steel in both local and international markets, says Elara Securities. Also, the recent unfavorable ruling by the Supreme Court on JSW's resolution plan for BPSL is an overhang until more clarity emerges. Their Ebitda projections for FY26E–27 are essentially maintained and Reiterate Reduce ratings with target price at ₹ 960 for the JSW Steel share price.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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