Buy JSW Steel, target price Rs 300: Motilal Oswal

Motilal Oswal has given buy rating to JSW Steel with a target price of Rs 300. The share price moved up by 1.49 per cent from its previous close of Rs 268.35. The stock’s last traded price is Rs 272.35.

JSW Steel Ltd., incorporated in the year 1994, is a Large Cap company (having a market cap of Rs 65990.12 Crore) operating in Metals - Ferrous sector.

JSW Steel Ltd. key Products/Revenue Segments include Hot Rolled Coils/Plates/Sheets which contributed Rs 32995.00 Crore to Sales Value (51.34 % of Total Sales), Rolled Product which contributed Rs 14011.00 Crore to Sales Value (21.80 % of Total Sales), Coils (Cold Rolled) which contributed Rs 8328.00 Crore to Sales Value (12.95 % of Total Sales), Others which contributed Rs 2543.00 Crore to Sales Value (3.95 % of Total Sales), Coils & Sheets (Galvanised) which contributed Rs 2129.00 Crore to Sales Value (3.31 % of Total Sales), Other Operating Revenue which contributed Rs 1947.00 Crore to Sales Value (3.02 % of Total Sales), Billets & Blooms which contributed Rs 1553.00 Crore to Sales Value (2.41 % of Total Sales), M S/S S Slabs which contributed Rs 756.00 Crore to Sales Value (1.17 % of Total Sales)for the year ending 31-Mar-2020.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 11454.00 Crore, down 34.76 % from last quarter Sales of Rs 17556.00 Crore and down 40.98 % from last year same quarter Sales of Rs 19407.00 Crore. Company reported net profit after tax of Rs -529.00 Crore in latest quarter.

Investment Rationale
The brokerage has raised JSTL's consolidated EBITDA by 11% each in FY21 and FY22 and target price (TP) by 24% to Rs 300.

Promoter/FII Holdings
Promoters held 42.71 per cent stake in the company as of March 31, 2020, while FIIs held 17.13 per cent, DIIs 4.9 per cent and public and others 35.26 per cent.