Net profit more than doubled to ₹4,696 crore. Jefferies raised EPS estimates and sees a path to 80 million tonnes of capacity by FY32.
Alpha Score of 67 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Shares of JSW Steel rose more than 2% on Monday after the company reported a sharp jump in June quarter earnings and said it would sell shares in the IPO of its JSW One Platforms unit.
The stock traded at ₹1,260 on the NSE after touching an intraday high of ₹1,265.40, compared with its previous close of ₹1,237.30.
Net profit for the June quarter of FY27 more than doubled to ₹4,696 crore from ₹2,209 crore a year earlier, driven by better realisations and a fall in finance costs. The board also approved the sale of equity shares worth up to ₹811 crore in the proposed IPO of JSW One Platforms Ltd through an offer for sale.
Jefferies reiterated its buy rating with a target price of ₹1,650 and kept the stock as its top pick in the India metals sector. The brokerage raised its FY27-28 earnings per share estimates by 1-4% and said it expects EPS to treble over FY26-29. Quarterly EBITDA should rise from ₹94 billion in the June quarter to an average of ₹110 billion during the rest of FY27, Jefferies said. It also highlighted the company's plan to double steelmaking capacity to 80 million tonnes by FY32.
Motilal Oswal said the results were broadly in line with expectations, supported by improvement in net sales realisation. It reiterated its buy rating with a target price of ₹1,470. The brokerage said improving captive iron ore availability, better coal security, new capacity additions and robust domestic steel demand should support margin expansion. It noted that the transfer of BPSL to the JFE joint venture cut consolidated debt to ₹462 billion as of June 2026, improving the net debt-to-EBITDA ratio to 1.46x from 1.81x in Q4FY26.
Emkay Global reiterated its add rating with an unchanged target price of ₹1,400, saying earnings should strengthen over FY26-29 with a favourable domestic pricing environment and 8% volume CAGR.
Elara Capital revised its rating to reduce from sell while raising its target price to ₹1,259 from ₹1,149. The brokerage said stronger-than-expected steel price realisations prompted an increase in its EBITDA estimates for FY27E-29E, although it expects volume growth to moderate after the deconsolidation of BPSL and sees continued cost pressure from higher coking coal costs in the near term.
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