JSW Steel Share price: Sharekhan maintains Buy on JSW Steel with a price target of Rs 500
JSW Steel’s valuation of 6.5x its FY2023E EV/EBITDA seems reasonable, given our expectation of strong 15% PAT CAGR over FY2021E-FY2023E, improving RoE to 16.8% by FY20223E and likely balance sheet deleveraging. Also, sustained high profitability would result in early turnaround of loss-making overseas subsidiaries
Sharekhan expects domestic steel producers to witness sustained steel margin upcycle (expect EBITDA/tonne of Rs 13500-14000/tonne) over FY2022-FY2023: Reuters