JSW Steel stocks: Shares of metal giant JSW Steel reached a record high today, despite significant volatility in the broader market. The stock rose by 1.31%, hitting an all-time high of Rs 937.20, up from the previous close of Rs 925 in early trading. A total of 0.35 lakh shares were traded, resulting in a turnover of Rs 3.23 crore on the BSE. Over the past year, JSW Steel has delivered a return of 19.37%, and the stock has increased by 5% so far this year.
The firm’s market capitalization climbed to Rs 2.25 lakh crore. The stock had dropped to a 52-week low of Rs 723.15 on November 1, 2023.
From a technical perspective, the relative strength index (RSI) of the stock is at 57.7, indicating it is neither overbought nor oversold. The stock is trading above its 5-day, 10-day, 20-day, 50-day, 100-day, 150-day, and 200-day moving averages. -JSW Steel stocks
Jigar S. Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, notes that the stock faces resistance at Rs 920-930.
JSW Steel has recently exhibited a promising upward movement, potentially making it an attractive investment opportunity at this stage. However, caution is warranted as the stock approaches the completion of a bearish bat pattern. A double-top structure on hourly charts usually indicates potential resistance, with the RSI showing hidden bearish divergence. In this context, investors should book profits within the Rs 920-930 price range to secure gains from the recent rise. Additionally, initiating new long positions should be avoided, according to Patel.
Motilal Oswal has set a price target of Rs 1,070 for JSW Steel.
Looking ahead, we anticipate robust domestic volumes for JSW Steel, driven by capacity expansions, a better product mix, and export opportunities. Additionally, with stable pricing, reduced coal costs, and improved operational efficiencies, we expect its EBITDA per tonne to improve. Just 6.1 times FY26E EV/EBITDA is JSW Steel’s current market value. We reiterate our BUY recommendation on JSW Steel with a price target of Rs 1,070, based on 7x FY26E EV/EBITDA, said Motilal Oswal.
The brokerage noted that a key downside risk for the stock is JSW Steel’s reliance on imported coking coal; any sharp increase in its prices could impact margins.
In Q4 of the previous fiscal year, the firm reported a 65% drop in net profit to Rs 1,299 crore, compared to Rs 3,644 crore a year earlier. Revenue from operations in the fourth quarter slightly decreased to Rs 46,269 crore, down from Rs 46,962 crore in the corresponding quarter of the previous year.
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The Board has recommended a final dividend of Rs 7.30 per share, which will be credited to the members within 30 days from the date of the AGM.
