JSW Steel drops after 3-day 8.3% rally

Meanwhile, the BSE Sensex was down 96.80 points or 0.5% at 19,379.20.

On BSE, 50,000 shares were traded in the counter as against average daily volume of 1.68 lakh shares in the past one quarter.

The stock hit a high of Rs 808 and a low of Rs 796.25 so far during the day. The stock had hit a 52-week low of Rs 464 on 20 December 2011. The stock had hit a 52-week high of Rs 885 on 17 February 2012.

The stock had outperformed the market over the past one month till 19 December 2012, surging 11.41% compared with the Sensex's 6.2% rise. The scrip had also outperformed the market in past one quarter, jumping 10.98% as against Sensex's 5.3% gain.

The large-cap company has equity capital of Rs 223.12 crore. Face value per share is Rs 10.

Shares of JSW Steel had rallied 8.32% in three trading sessions to settle at Rs 806.95 on Wednesday, 19 December 2012, from Rs 744.90 on 14 December 2012, after the company during trading hours on 17 December 2012, said it has signed an agreement with Japan's JFE Steel Corporation for the production of non-oriented electrical steel sheets at JSW Steel's Karnataka plant.

JSW Steel and Japan's JFE Steel Corporation on 17 December 2012, announced the signing of a joint agreement whereby JFE will provide technology for the production of non-oriented electrical steel sheets (CRNGO) at JSW Steel's Vijayanagar plant in Karnataka. At present, the electrical steel sheet products are primarily imported in India due to technological constraints and JSW Steel will be in a position to cater to fast growing consumer and industrial applications market, JSW Steel said in a statement.

JSW Steel plans to start up its new annealing and coating line for electrical steel sheets in latter half of 2014. The initial annual output is projected to be 200,000 tonnes, which will be increased to 0.6 million tonnes per year in phases. The company will also take sight on the production of cold rolled grain oriented (CRGO) grade in future, JSW Steel said. Implemented in phased manner, JSW envisages becoming the largest electrical steel producer in the country, the company said in a statement.

JFE Steel Corporation, one of the world's leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. JFE Steel owns a 16.17% stake in JSW Steel.

JSW Steel reported a consolidated net profit of Rs 691.25 crore in Q2 September 2012, compared with net loss of Rs 669.32 crore in Q2 September 2011. Net sales rose 16.5% to Rs 9475.24 crore in Q2 September 2012 over Q2 September 2011.

JSW Steel, part of the O P Jindal Group, is one of the lowest cost steel producers in the world. JSW Steel is engaged in manufacture of flat and long products viz. HR Coils, CR coils, galvanised/galvalume products, colour coated products, auto grade/white goods grade CRCA steel, bars and rods. JSW Steel has one of the largest galvanizing and colour coating production capacity in the country and it is the largest exporter of galvanized products with presence in over 100 countries across five continents.

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