Analysts have revised their price target for JSW Steel upward by approximately ₹20. They cite improved profit margin projections and adjusted discount rates as key factors in their updated valuation.
What's in the News
- JSW Steel reported a 17% year-on-year increase in consolidated crude steel production for the second quarter of FY26, reaching 7.90 million tonnes.
- The company incorporated a joint venture with Andhra Pradesh Mineral Development Corporation to set up the Konijedu Marlapadu Integrated Iron Ore Project. The project aims to produce 1.3 million tons of iron ore concentrate annually and reduce import costs.
- JSW Steel and POSCO Group signed a Heads of Agreement to explore the setup of a 6 MTPA integrated steel plant in India. The focus is on deepening strategic collaboration.
- JSW Steel, with JFE Steel Corporation, announced a major capacity expansion of grain-oriented electrical steel plants in Karnataka and Maharashtra, with a total planned investment of INR 155,600 million.
- JSW Steel joined a global consortium led by BlueScope Steel to participate in the Whyalla Steelworks sale process. The consortium is exploring opportunities for lower-emissions iron production in Australia.
Valuation Changes
- Fair Value: Increased from ₹1,078.48 to ₹1,098.55, reflecting a modest upward revision in the company's assessed worth.
- Discount Rate: Increased slightly from 14.78% to 15.08%.
- Revenue Growth: Marginally reduced from 11.70% to 11.68%.
- Net Profit Margin: Improved from 9.77% to 9.94%.
- Future P/E: Increased slightly from 17.32x to 17.48x, indicating a small rise in earnings expectations.
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