JSW Steel Ltd., incorporated in the year 1994, is a Large Cap company (having a market cap of Rs 174450.80 Crore) operating in Metals – Ferrous sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 29100.00 Crore, up 7.40 % from last quarter Total Income of Rs 27095.00 Crore and up 144.25 % from last year same quarter Total Income of Rs 11914.00 Crore. Company reported net profit after tax of Rs 5577.00 Crore in latest quarter.
Investment Rationale
The brokerage likes JSTL given its strong project pipeline and cost reduction initiatives, which should support margins. Over FY21–23E, it expects an above-industry volume CAGR of 17%, driven by the Dolvi expansion. The announced 5mtpa expansion by FY24, at a competitive cost of ~USD400/t, should be RoCE-attractive and improve the growth outlook beyond FY24. Despite the high capex, it expects net debt to decline ~17% over FY21–23E to INR542b. It values JSTL at 6x FY23E EV/EBITDA to arrive at TP of INR840.
Promoter/FII Holdings
Promoters held 44.1 per cent stake in the company as of June 30, 2021, while FIIs held 0.4 per cent, DIIs 20.6 per cent and public and others 34.9 per cent.
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