JSW Steel shares in focus today as firm incorporates fully owned subsidiary

Shares of JSW Steel Ltd are in focus today after the metal sector major said the company has incorporated a new wholly owned subsidiary, JSW Green Steel, on February 27.

The object of forming the new company is manufacture of hot-rolled and coldrolled products of steel, which is in line with the main line of business of the parent firm, said JSW Steel on Wednesday. The new firm has an authorised capital of Rs 5,00,000 divided into 50,000 equity shares of Rs. 10/-each

JSW Steel stock ended 2.49% lower at Rs 798.20 on Wednesday against the previous close of Rs 818.55 on BSE. A total of 0.33 lakh shares of the firm changed hands amounting to a turnover of Rs 2.68 crore on BSE.

The stock hit a record high of Rs 895.60 on December 28, 2023 and a 52 week low of Rs 649.75 on March 16, 2023.

The metal stock has clocked 19% returns in a year. This year, the stock is down 9.02%. 

JSW Steel posted a strong set of earnings in Q3. Consolidated net profit climbed five times to Rs 2,415 crore in the December 2023 quarter. Consolidated revenue from operations surged 7.2 per cent year-on-year (YoY) to Rs 41,940 crore during the third quarter.

In terms of technicals, the relative strength index (RSI) of the stock stands at 40.8, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading lower than the 10 day, 20 day, 50 day 100 day, 150 day and 200 day moving averages.

Crude steel output, on a consolidated basis, climbed over 10 per cent YoY to 6.87 million tonne, while sales volume rose 5 per cent to 6 million tonnes.

The company is on track to meet the guided crude steel production of 26.34 million tonnes and sales of 25 million tonne, it said.

EBITDA slipped 9% to Rs 7,180 crore in Q3 sequentially and EBITDA margin in the December quarter stood at 17.1 per cent. Steel sales climbed 7 per cent YoY to 6MT and domestic sales rose 2% (YoY) to 5.27 MT.