JSW Steel shares hit record high, can they touch four-digit mark?
JSW Steel stock gained 1.31% to a record Rs 937.20 against the previous close of Rs 925 in early deals. Market cap of the firm climbed to Rs 2.25 lakh crore.
- Jun 19, 2024,
- Updated Jun 19, 2024 3:59 PM IST
Shares of metal major JSW Steel hit their record high amid high volatility in the broader market today. The metal sector stock gained 1.31% to a record of Rs 937.20 against the previous close of Rs 925 in early deals. A total of 0.35 lakh shares of the firm changed hands amounting to a turnover of Rs 3.23 crore on BSE. JSW Steel stock has clocked 19.37% returns in a year. This year, the stock has gained 5%.
Market cap of the firm climbed to Rs 2.25 lakh crore.
The stock fell to a 52 week low of Rs 723.15 on November 1, 2023.
In terms of technicals, the relative strength index (RSI) of the stock stands at 57.7, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 5 day, 10 day, 20 day, 50 day 100 day, 150 day and 200 day moving averages.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers said, "Support will be at Rs 910 and resistance at Rs 930. A decisive close above the Rs 930 level may trigger a further upside to Rs 950. The expected trading range will be between Rs 900 and Rs 950 for a short-term."
Motilal Oswal has a price target of Rs 1070 on the metal stock.
"Going forward, we expect JSW Steel's domestic volumes to be robust, aided by capacity expansions, a better product mix, and export opportunities. Moreover, with stable pricing, softened coal costs, and improving operational efficiencies, we expect its EBITDA per tonne to improve going forward. JSW Steel is trading at 6.1 times FY26E EV/EBITDA. We reiterate BUY on JSW Steel with a price target of Rs 1,070 (premised on 7x FY26E EV/EBITDA)," said Motilal Oswal.
Key downside risk to the stock is that JSW Steel imports coking coal, and any sharp increase in its prices could impact margins, said the brokerage.
In Q4 of the previous fiscal, the firm reported a 65% fall in net profit to Rs 1299 crore against Rs 3644 crore a year ago. Revenue from operations in the fourth quarter fell marginally to Rs 46,269 crore compared with Rs 46,962 crore in the corresponding quarter of last year.
The Board recommended a final dividend of Rs 7.30 per share and the same will be credited to the members on or before 30 days from the date of AGM.
Shares of metal major JSW Steel hit their record high amid high volatility in the broader market today. The metal sector stock gained 1.31% to a record of Rs 937.20 against the previous close of Rs 925 in early deals. A total of 0.35 lakh shares of the firm changed hands amounting to a turnover of Rs 3.23 crore on BSE. JSW Steel stock has clocked 19.37% returns in a year. This year, the stock has gained 5%.
Market cap of the firm climbed to Rs 2.25 lakh crore.
The stock fell to a 52 week low of Rs 723.15 on November 1, 2023.
In terms of technicals, the relative strength index (RSI) of the stock stands at 57.7, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 5 day, 10 day, 20 day, 50 day 100 day, 150 day and 200 day moving averages.
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers said, "Support will be at Rs 910 and resistance at Rs 930. A decisive close above the Rs 930 level may trigger a further upside to Rs 950. The expected trading range will be between Rs 900 and Rs 950 for a short-term."
Motilal Oswal has a price target of Rs 1070 on the metal stock.
"Going forward, we expect JSW Steel's domestic volumes to be robust, aided by capacity expansions, a better product mix, and export opportunities. Moreover, with stable pricing, softened coal costs, and improving operational efficiencies, we expect its EBITDA per tonne to improve going forward. JSW Steel is trading at 6.1 times FY26E EV/EBITDA. We reiterate BUY on JSW Steel with a price target of Rs 1,070 (premised on 7x FY26E EV/EBITDA)," said Motilal Oswal.
Key downside risk to the stock is that JSW Steel imports coking coal, and any sharp increase in its prices could impact margins, said the brokerage.
In Q4 of the previous fiscal, the firm reported a 65% fall in net profit to Rs 1299 crore against Rs 3644 crore a year ago. Revenue from operations in the fourth quarter fell marginally to Rs 46,269 crore compared with Rs 46,962 crore in the corresponding quarter of last year.
The Board recommended a final dividend of Rs 7.30 per share and the same will be credited to the members on or before 30 days from the date of AGM.