JSW Steel shares hit record high, close above Rs 1,000 mark for 3rd session; what's next?

Shares of JSW Steel hit their record high for the second straight session on Monday amid a rally in the metal stocks. The stock also managed to end above the Rs 1,000 mark for the third straight session today. JSW Steel stock ended 2.82% higher at Rs 1030 on September 30 against the previous close of Rs 1,001.70. A total of 1.67 lakh shares of the firm changed hands amounting to a turnover of Rs 17.10 crore on BSE. Market cap of the firm rose to Rs 2.51 lakh crore. 

JSW Steel stock has clocked 32% returns in a year. This year, the stock is up 17%. In terms of technicals, the relative strength index (RSI) of the stock stands at 66, 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.

Brokerage Motilal Oswal has maintained its buy call with a price target of Rs 1100. 

"JSW Steel currently meets around 35% of its iron ore needs through captive mines, with plans to increase this in the future. In Q1FY25, the VAP share stood at 64% of the total volumes. Post the expansions, management foresees it to moderate but aims to maintain the VAP share greater than 50% in the long term. JSTL trades at 7x FY26E EV/EBITDA. We reiterate BUY on JSW Steel with a revised TP of Rs 1,100 (premised on 7.5x FY26E EV/EBITDA)," said the brokerage. 

ICICI Securities has a price target of Rs 1,140 on the metal stock. 

 On September 20, global brokerage Macquarie has upgraded JSW Steel 'outperform' and raised its price target to Rs 1,077 share, citing a positive outlook for India's metal sector. The previous price target stood at Rs 884. 

In the first quarter of the current fiscal, JSW Steel reported a 64% fall in net profit (attributable to owners) to Rs 867 crore. Revenue from operations came at Rs 42,943 crore in Q1 against Rs 42,213 crore in the year-ago quarter. EBITDA in Q1 slipped 22% on a year-on-year basis YoY to Rs 5,510 crore, while margins declined 390 basis points to 12.8%.