Bank of America (BofA) has maintained a Buy rating on JSW Steel with a target price of ₹1,090, implying an upside potential of 10% from the current market price (CMP) of ₹990.40.
Key highlights from BofA’s report:
- Expansion goals: JSW Steel aims to achieve a production capacity of 50 million tonnes per annum (MTPA) entirely through brownfield expansions, showcasing its focus on organic growth.
- Leverage control: The company is targeting a reduction in its net debt-to-EBITDA ratio to below 3x, compared to 3.5x reported in Q2, signaling a commitment to balance sheet improvement.
- Anti-dumping investigations: Investigations remain ongoing, which could impact global trade flows and pricing in the steel sector.
Stock performance: JSW Steel rose 2.53% yesterday, closing at ₹990.40, reflecting positive investor sentiment.
BofA’s positive outlook underscores JSW Steel’s ability to manage growth and debt efficiently while navigating challenges such as trade investigations. Investors will watch for updates on capacity expansion and debt reduction targets in the upcoming quarters.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.