JSW Steel shares remained stagnant over the past six months, with a mere 3% increase compared to Sensex's 9.68% rise. This subdued performance raises questions about the steel stock's future outlook. Over the past year, JSW Steel shares have failed to deliver double-digit returns.
Despite the lackluster short-term performance, JSW Steel has seen a robust 106% rise in the last three years. The stock closed flat at Rs 821.75 in the latest session. Brokerages offer varying outlooks, with Axis Securities assigning a target price of Rs 1,030, emphasizing the company's capacity expansion plans. ICICI Securities maintains a hold rating with a target of Rs 775.
Jefferies upgraded JSW Steel to hold, raising the target price to Rs 800 for 2024. From a technical perspective, the stock's relative strength index (RSI) stands at 43.7, indicating moderate volatility. JSW Steel is trading below short-term moving averages but above longer-term ones.
In Q2, JSW Steel reported a consolidated profit of Rs 2,773 crore, a significant improvement from a net loss of Rs 848 crore in the same period last year. Consolidated net revenue rose 6.7% to Rs 44,584 crore, and consolidated EBITDA stood at Rs 7,886 crore, with an operating margin of 17.7%.
Despite the mixed short-term performance, brokerages hold varying opinions on JSW Steel's future prospects, emphasizing factors like capacity expansion and overall market conditions. Investors are advised to consult financial advisors before making decisions based on stock market news.
