Update shared on 22 Nov 2025
Fair value Increased 0.90%Narrative Update on JSW Steel: Analyst Price Target Revision
Analysts have raised their fair value estimate for JSW Steel from ₹1,159.89 to ₹1,170.33. This reflects a modest upward revision driven by expectations of slightly higher revenue growth and an improved long-term outlook.
What's in the News
- JSW Steel is reportedly exploring the sale of a 50% stake in Bhushan Power and Steel, acquired in 2019. JFE Steel has emerged as the frontrunner, and deal completion is likely by December, pending regulatory approvals. (Key Developments)
- The company reported a 9% year-over-year increase in crude steel production for October 2025, reaching 2.495 million tonnes. (Key Developments)
- A strategic reorganization of JSW Steel’s U.S. operations has been approved to streamline structure, consolidating multiple U.S. business units into a single holding company. (Key Developments)
- JSW Steel announced the formation of APJSW Private Limited, a joint venture with Andhra Pradesh Mineral Development Corporation, to set up an iron ore project in Andhra Pradesh. This project aims to replace imported ore and improve cost savings. (Key Developments)
- Significant production growth was noted for the second quarter of FY26, with crude steel output up 17% year-over-year and 9% quarter-over-quarter. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target (Fair Value): Has risen slightly from ₹1,159.89 to ₹1,170.33.
- Discount Rate: Has increased marginally from 15.67% to 15.69%.
- Revenue Growth: Is projected to improve from 11.35% to 11.52%.
- Net Profit Margin: Is expected to decline modestly from 9.93% to 9.83%.
- Future P/E: Is forecasted to grow from 18.25x to 18.52x.
Disclaimer
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