JSW Steel jumps after brokerage upgrade

JSW Steel rose 2.28% to Rs 199.75 at 11:41 IST on BSE on reports that a foreign broker upgraded its rating on the stock to 'buy'.

Meanwhile, the S&P BSE Sensex was down 36.49 points, or 0.12% to 31,234.79.

On the BSE, 6.13 lakh shares were traded in the counter so far, compared with average daily volumes of 8.97 lakh shares in the past one quarter. The stock had hit a high of Rs 202.25 and a low of Rs 198.80 so far during the day. The stock hit a record high of Rs 209.35 on 17 May 2017. The stock hit a 52-week low of Rs 133.20 on 24 June 2016.

The stock had underperformed the market over the past one month till 7 June 2017, rising 1.43% compared with 4.47% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 10.50% as against Sensex's 8.10% rise. The scrip had also outperformed the market in past one year, rising 39.97% as against Sensex's 15.73% rise.

The large-cap company has equity capital of Rs 241.72 crore. Face value per share is Re 1.

JSW Steel reportedly received a rating and target price upgrade from a foreign brokerage firm based on better outlook for the company going forward. The brokerage upgraded the stock from 'outperform' to 'buy' with a target of Rs 300 from Rs 185 earlier.

The broker reportedly said that JSW Steel will be a big beneficiary of improving pricing and demand-supply outlook in the steel industry for the coming years. The broker added that the anti-dumping duties on HRC (hot rolled coil) and CRC (cold rolled coils) steel getting extended until August 2021 is a signal of continuation of import protection for the industry.

On a consolidated basis, net profit of JSW Steel rose 235.42% to Rs 1008.58 crore on 57.06% rise in net sales to Rs 16287.30 crore in Q4 March 2017 over Q4 March 2016.

JSW Steel is the leading integrated steel company in India with an installed steel-making capacity of 18 MTPA.

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