The consensus price target for JSW Steel has been raised from ₹1056 to ₹1078, primarily reflecting a modest increase in its forward P/E multiple, while profit margins remained steady.
What's in the News
- JSW Steel reported strong YoY production growth: August crude steel production up 17% and July up 19%, with Indian operations capacity utilization at 95% and 92.5%, respectively; Q1FY26 crude steel production increased from 6.35 to 7.26 million tonnes YoY.
- The board approved strategic joint ventures: with APMDC to establish the Konijedu Marlapadu Integrated Iron Ore Project in Andhra Pradesh (89% JSW ownership, 1.3mtpa concentrate, INR 10.75bn cost), reducing reliance on imported ore and enabling cost savings.
- JSW Steel and POSCO signed a non-binding agreement to jointly explore building a 6mtpa integrated steel plant in India as a 50:50 joint venture, targeting Odisha as a potential location.
- Expansion with JFE Steel involves joint investments of around INR 58.45bn to increase grain-oriented electrical steel production capacity at Vijayanagar and Nashik plants, supporting domestic steel self-sufficiency; total investments in these assets will reach INR 155.6bn.
- JSW Steel is participating in a consortium with BlueScope, Nippon Steel, and POSCO for the proposed acquisition of Whyalla Steelworks in Australia, potentially supporting low-emission iron production; and is seen as a leading candidate to acquire a stake in Coronado Global Resources’ Curragh coal mine in Queensland.
Valuation Changes
Summary of Valuation Changes for JSW Steel
- The Consensus Analyst Price Target has risen slightly from ₹1056 to ₹1078.
- The Future P/E for JSW Steel has risen slightly from 16.84x to 17.32x.
- The Net Profit Margin for JSW Steel remained effectively unchanged, moving only marginally from 9.83% to 9.77%.
Disclaimer
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