DINESH

JSW Steel

Industry: Iron & Steel
Latest CMP 1,270
Today's Change ▼ -0.39%
52-Week High / Low 1,330 | 1,021
Price Date: 14-Aug-2026
Recommendation Strong Sell
Target Price 1,343
Expected Upside 2.9%
Forecast Horizon 2 Years
Historical CAGR 22.3%
1,000 Invested 15-Aug-2006
Today's Value 55,921
Investment Period 20 Years

Stock Snapshot

Post Results Return
+3.3%
Mild Positive Re-rating
1-Year Target Price
1,174
2-Year Target Price
1,343
52-Week High / Low
1,330 / 1,021
20-Day Return
+1.0%
Market Cap (Cr.)
309,880
Current PE
8.2
P/BV Ratio
3.9
Dividend Yield
0.5%
Industry PE
19.4

Price Performance

Basis of our Recommendation

JSW Steel's outlook is shaped by management's commitment to aggressive capacity expansion and vertical integration, which are expected to enhance long-term margins and revenue growth. The company's strategic focus on increasing its share of value-added products and improving operational efficiencies, particularly through the development of the 30 MTPA slurry pipeline, positions it well to navigate near-term challenges such as elevated coking coal costs and geopolitical supply chain disruptions. Vista's financial outlook reflects stable revenue growth, although margins may face pressure due to fluctuating input costs. The anticipated recovery in domestic demand, particularly in infrastructure and automotive sectors, supports a constructive revenue trajectory. However, the company must remain vigilant regarding rising import competition and potential regulatory challenges. Over the next 12-24 months, key opportunities include the successful ramp-up of new capacities and the strategic shift towards high-margin products, while headwinds may arise from global price volatility and cost inflation. Overall, JSW Steel's disciplined execution and robust balance sheet provide a solid foundation for achieving its long-term growth targets

👍 Why We Like This Stock

  • Aggressive capacity expansion and vertical integration strategies are expected to enhance long-term margins
  • Strong domestic demand in infrastructure and automotive sectors supports stable revenue growth
  • Management's focus on value-added products and operational efficiencies positions the company favorably

Things To Watch Out For

  • Elevated coking coal costs and geopolitical supply chain disruptions may pressure margins
  • Rising import competition poses a risk to market share and pricing power
  • Potential regulatory challenges could impact export competitiveness and operational costs

Key Parameters

Balance Sheet Strength
Stable Financial Structure
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
Consistent
FII Holdings
Increasing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 175,006 168,824 185,470 190,240 209,134
Profit Before Tax (Cr.) 12,884 5,698 46,609 37,613 32,533
PBT Margin 7.4% 3.4% 2513.0% 19.8% 15.6%
Net Profit (Cr.) 10,366 3,469 40,553 32,650 26,018
Earnings Per Share 41.8 14.3 153.1 123.3 106.6

Analyst Recommendations

Broker Recommendation Target Price Date
Anand Rathi ▼ Sell 1,480 18-Jul-2026
Citigroup ▼ Sell 1,100 20-Jul-2026
Elara Capital ▼ Reduce 1,149 15-May-2026
Goldman Sachs ▲ Buy 1,525 20-Jul-2026
HDFC Securities ▲ Buy 1,278 18-May-2026
HSBC ▲ Buy 1,540 11-Jun-2026
IDBI Capital ▲ Buy 1,332 20-Jul-2026
Investec ▲ Buy 1,525 20-Apr-2026
JMFinancials ▲ Buy 1,460 20-Jul-2026
JPMorgan ▲ Buy 1,500 20-Jul-2026
Jeffries ▲ Buy 1,650 20-Jul-2026
Kotak Securities ▲ Buy 1,450 20-Jul-2026
Macguire ▲ Buy 1,353 15-May-2026
Mirae Asset ▲ Buy 1,500 19-Jun-2026
Moneycontrol ▲ Overweight nan 20-Jul-2026
Morgan Stanley ▲ Overweight 1,470 20-Jul-2026
Motilal Oswal ▲ Buy 1,470 18-Jul-2026
Nomura ▲ Buy 1,400 29-May-2026
Prabhudas Liladhar ▲ Buy 1,351 19-Jul-2026
UBS ► Hold 1,400 15-Jun-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 1,462
Coverage 20 Analysts
Analysts' Viewpoint
JSW Steel's strategic focus on vertical integration and capacity expansion underpins analysts' optimism, with projects like the Odisha slurry pipeline and increased captive coking coal sourcing expected to enhance cost efficiency. The company's robust balance sheet and improved operational efficiency, bolstered by the JFE Steel joint venture, further strengthen its growth prospects. However, analysts note risks from rising steel imports and geopolitical tensions affecting raw material costs. Key future catalysts include the commissioning of major projects such as the Dolvi expansion and the Kadapa EAF, which are anticipated to drive long-term growth and margin improvement.

Company Overview

Show Company Profile

JSW Steel Limited manufactures and sells iron and steel products in India and internationally. The company offers hot and cold rolled steel products, colour coated sheets, galvanized and galvalume steel, electrical steel, steel doors, zinc-magnesium-aluminium products, aluminium-zinc roofing products, tin plate, TMT bars, wire rods, special alloy steel, grinding media, prepainted colour coated steel, low-carbon steel, hot-rolled sheets, structural steel, and low relaxation pre-stressed concrete steel strands under the JSW Neosteel, JSW Neostrands, JSW Neosteel Fastbuild, JSW Trusteel, JSW Colouron+, JSW Everglow, JSW Vishwas, JSW Platina, JSW Magsure, JSW Galveco, JSW Silveron+, JSW Pragati+, JSW Vishwas+, JSW Galvos, JSW Avante, JSW ColourFrame, JSW Endura+, JSW Radiance brands. It also engages in acquisition and investment in steel related and allied businesses, and trading in steel products; real estate; production and distribution of special long steel products; management of logistic infrastructure of Piombino's port area; produces forged steel balls; manufactures plates, pipes and double jointing, slabs, and hot rolled coils; produces gaseous and liquid form of oxygen, nitrogen, argon, and other products recoverable from separation of air; mining; and construction and development of residential township. In addition, the company trades in iron ore, steel, and allied activities; and provides steel plant, coke oven and pellet plant, power plant, and scrap shredding facilities. Its products are used in automotive, general engineering, machinery, and infrastructure and construction sectors. The company was formerly known as Jindal Vijayanagar Steel Limited and changed its name to JSW Steel Limited in June 2005. JSW Steel Limited was founded in 1982 and is based in Mumbai, India.