View Full Version : JSW Steel Limited (NSE:JSWSTEEL) (BSE:500228)

08-05-2015, 11:39 AM
JSW Steel Limited is an India-based holding company. The Company and its subsidiaries are engaged in the business of production and distribution of iron and steel products. The Company operates through segments, including Steel, Power and Other. Other business segment represents cement, mining and construction activities. The Company has six manufacturing plants located across India. The Company's product portfolio across flat and long steel products includes hot rolled (HR) coils, sheets and plates; cold rolled coils and sheets; galvanized products; galvalume products; pre-painted galvanized products; pre-painted galvalume products; thermo mechanicallly treated (TMT) bars; wire rods and special steel bars; rounds and blooms, and angles. The Company's color coated products include corrugated sheets and profiles, which the Company sells under JSW Colouron and JSW Colouron Plus brand names.

Official Website: www.jsw.in

08-05-2015, 11:40 AM
JSW Steel’s standalone revenues for 1QFY2016 came in at Rs9,982cr as against our expectation of Rs10,240cr. Raw Material expenses were 4% below our expectation at ~Rs5,890cr, led by decline in iron ore and coking coal prices. We expect the company to further benefit from raw material cost declines in 2QFY2016. Standalone EBITDA came in at Rs1,505cr, 2.5% below our estimate of Rs1,544cr. Strong performance from coated products division: The company’s consolidated net sales declined by ~13% yoy to Rs11,382cr, ~1.1% ahead of our estimate of Rs11,254cr. Coated products revenues came in ahead of our expectations at Rs2,132cr on account of higher realizations. Coated products’ EBITDA jumped to Rs111cr during the quarter as against our expectations of Rs72cr and vs Rs95cr in 1QFY2015. US plate and pipe mill performance declined significantly on account of distribution issues and inventory write-downs. The Chilean operation posted a profit of $0.68mn as against a loss of $0.35mn in 1QFY2015. Outlook and valuation: The results have been in line with our expectations and we have not materially changed our FY2016 and FY2017 EBITDA estimates. We expect steel prices to remain under pressure for a few quarters, but expect the company to retain its margins. We value the company at 6.0x FY2017E EBITDA to arrive at our target price of Rs815. We retain our Neutral rating on the stock.

Source: http://www.angelbroking.com/