JSW Steel Ltd.’s stock saw flat returns over the previous six months. In comparison, the Sensex increased by 9.68% throughout that time, while the stock has only increased by 3%. Investors in the top steel maker are unsure about the future of the steel company due to the modest returns in the last six months. Furthermore unappealing are the annual returns of 9% on JSW Steel shares. For as long as a year, the steel stock has not produced double-digit gains.
But in three years, the stock of the steel industry has increased by 106%. The JSW Steel shares closed flat at Rs 821.75 in the previous session on the BSE, down from the previous finish of Rs 828.80. A total of 0.27 lakh of the company’s shares were traded, generating a BSE turnover of Rs 2.27 crore. The company’s market capitalization was Rs 2 lakh crore on the BSE. The stock attained a 52-week high of Rs 895.60 on December 28, 2023 and a 52 week low of Rs 649.75 on March 16, 2023.
JSW Steel was previously rated as performing; now, global brokerage Jefferies has upgraded it to hold and increased the target price to Rs 800 for 2024 from Rs 700.
JSW Steel’s relative strength index (RSI) is 43.7 on the technical side, indicating that it is not trading in either the overbought or oversold areas. The stock has a beta of 0.3, indicating relatively low volatility in a year. Less than the 5 day, 10 day, 20 day, and 30 day moving averages, but above the 50 day, 100 day, 150 day, and 200 day moving averages, are the shares of JSW Steel now trading.
In contrast to a consolidated net loss of Rs 848 crore during the same period last year, the JSW Group company posted a consolidated profit of Rs 2,773 crore in the September quarter. Comparing the Q2 results to the same quarter last year, JSW Steel’s consolidated net sales increased 6.7% to Rs 44,584 crore from Rs 41,778 crore.
There were Rs 7,886 crore in consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA). From 4.2% to 17.7%, the operating margin increased by 1,350 basis points in just one year.
As one of the top six steel producers in India, JSW Steel is a division of the $22 billion JSW Group.
