Brokerages split on JSW Steel post Q3 results miss; varied targets emerge

JSW Steel's Q3FY25 show near analysts divided arsenic the company's results missed expectations crossed cardinal metrics. The alloy large reported a 70.3 per cent YoY diminution successful consolidated nett profit to Rs 717 crore, good beneath Q3FY24's Rs 2,415 crore. Revenue dropped marginally by 1.3 per cent YoY to Rs 41,378 crore, portion EBITDA margins contracted 360 ground points to 13.5 per cent. Analysts offered mixed perspectives, citing muted alloy prices and operational challenges.

Nuvama: Cautious outlook, 'Reduce' maintained

Nuvama highlighted a 5 per cent sequential driblet successful standalone EBITDA to Rs 4,390 crore, driven by weaker alloy prices and higher robust ore costs. However, higher volumes and reduced coking ember costs provided immoderate relief. Looking ahead, Nuvama projects a Q4FY25E EBITDA per tonne summation of Rs 1,500-2,000, aided by falling earthy worldly costs and rising volumes. Despite this optimism, the brokerage chopped its FY25E and FY26E EBITDA estimates by 4 per cent and 7 per cent, respectively, and retained its ‘Reduce’ standing with a target terms of Rs 821.

JM Financial: Positive connected borderline recovery, maintains 'Buy'

JM Financial recovered JSW Steel’s Q3 consolidated EBITDA of Rs 5,500 crore aligned with expectations. It noted management's commentary connected coking ember outgo reductions and ramping up the JVML facility, signalling borderline betterment successful Q4. With further enactment from rising authorities capex and import tariffs, JM Financial maintained its ‘Buy’ rating, revising the people terms to Rs 1,160 from Rs 1,130.

Global brokerages: Mixed signals

Nomura reaffirmed a 'Buy' standing with a people terms of Rs 1,220, citing outgo ratio gains but lowering FY25F EBITDA forecasts by 8 per cent owed to weaker-than-expected alloy prices. Conversely, Citi retained a 'Sell' rating, expanding the people to Rs 715 from Rs 700. Meanwhile, Morgan Stanley and Investec reiterated 'Overweight' and 'Buy' ratings, with targets of Rs 1,150 and Rs 1,100, respectively.

Key takeaway

JSW Steel’s Q3 show revealed operational resilience amid pricing challenges. While home brokerages thin toward caution, planetary players stay optimistic, betting connected a betterment successful alloy request and borderline improvements.