JSW Steel Stock Price: Should you buy, sell, or hold shares of this company?

Synopsis:
Jefferies, Morgan Stanley, and Investec see upside for JSW Steel with targets of Rs 1,400, Rs 1,300, and Rs 1,250, citing stronger finances, while Citi stays cautious with a Rs 915 sell target, expecting downside.

This Steel Stock, engaged in steel manufacturing, producing flat and long steel products for automotive, construction, infrastructure, and consumer industries with integrated production facilities, jumped after Jefferies, Citi, Morgan Stanley, and others had recommended a target of upside and downside of up to 22 percent and 20 percent, respectively.

With a market capitalization of Rs. 2,81,826.34 crore, the shares of JSW Steel Limited were currently trading at Rs. 1,152.45 per equity share, rising nearly 0.43 percent from its previous day’s close price of Rs. 1,147.50. 

What is the News?

Jefferies, a prominent brokerage firm, has recommended a “Buy” call on JSW Steel Limited with a target price of Rs. 1,400 per share, indicating an upside potential of 22 percent from its previous day’s close price of Rs. 1,147.50. 

Jefferies maintains its Buy rating on JSW Steel because it believes the recent partnership deal will make the company financially stronger and more efficient. The transaction is expected to lower JSW’s debt levels by FY27, which means the company will be in a safer and healthier financial position. 

Jefferies also sees the deal as neutral for earnings, so it doesn’t negatively affect profits. Plus, the partnership should help upgrade BPSL’s products and improve overall productivity. Together, these factors support Jefferies’ target price and confidence in the company’s long-term growth.

Morgan Stanley, a prominent brokerage firm, has recommended an “Overweight” call on JSW Steel Limited with a target price of Rs. 1,300 per share, indicating an upside potential of 13.29 percent from its previous day’s close price of Rs. 1,147.50. 

Morgan Stanley kept its Overweight rating because this deal helps JSW Steel strengthen its financial position by reducing a large amount of debt, about Rs 37,400 crore. By freeing up the balance sheet, JSW Steel will have more flexibility and resources to invest in its future growth plans. This includes expanding its domestic steel capacity to 50 million tonnes by 2030. 

Investec, a prominent brokerage firm, has recommended a “Buy” call on JSW Steel Limited with a target price of Rs. 1,250 per share, indicating an upside potential of 8.93 percent from its previous day’s close price of Rs. 1,147.50. 

Investec has maintained its Buy rating because the monetization of BPSL will make JSW Steel’s overall structure simpler and significantly reduce its debt. After the transaction, JSW’s consolidated net debt is expected to fall by about Rs 38,500 crore, which is nearly half of its current debt. 

Citi, a prominent brokerage firm, has recommended a “Sell” call on JSW Steel Limited with a target price of Rs. 915 per share, indicating a downside potential of 20.26 percent from its previous day’s close price of Rs. 1,147.50.

Citi has maintained its Sell rating even though the deal will help JSW Steel cut its debt levels. After the transaction, JSW’s consolidated net debt-to-EBITDA ratio is expected to drop from 3x to 1.7x, which gives the company more flexibility to invest in future growth. 

The deal also benefits JFE Steel by giving it a strong entry into the fast-growing Indian steel market. However, despite these positives, Citi still doesn’t see enough upside to change its view, so it maintains its target price and Sell rating.

Company Overview

JSW Steel Limited is a leading steel company in India, started in 1982 by the Jindal Group. The company grew bigger over the years by merging other steel businesses and became one of the top private steel makers in the country. It makes many types of steel products used in different industries.

The company is involved in making steel from the raw materials stage, from mining iron ore to producing finished steel products. It uses modern technology to make steel in an eco-friendly way, trying to reduce pollution and use less energy.

JSW Steel creates products like hot-rolled and cold-rolled steel sheets, galvanized steel, and steel rods and wires. These products are used in building houses, making cars, infrastructure projects like roads and bridges, and household appliances. 

JSW Steel has many factories across India in places like Vijayanagar and Dolvi. It produces a large amount of steel every year and sells to more than 100 countries. It is part of the larger JSW Group, which also works in energy, cement, and infrastructure sectors, helping support its steel business.

Recent quarter results

Coming into financial highlights, JSW Steel Limited’s revenue has increased from Rs. 39,684 crore in Q2 FY25 to Rs. 45,152 crore in Q2 FY26, which has grown by 13.78 percent. The net profit has also grown by 307.43 percent from Rs. 404 crore in Q2 FY25 to Rs. 1,646 crore in Q2 FY26.

JSW Steel Limited’s revenue has grown at a CAGR of 18.15 percent over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 8.11 percent and 4.94 percent, respectively. JSW Steel Limited has an earnings per share (EPS) of Rs. 24.6, and its debt-to-equity ratio is 1.22x.

Written By – Nikhil Naik

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