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JSW Steel shares rise nearly 7% as brokerages remain bullish on stock

Updated : May 26, 2020 11:07 AM IST

Shares of JSW Steel rose nearly 7 percent despite poor March quarter results as brokerages remained bullish on the stock.

The company reported a sharp fall in consolidated net profit to Rs 188 crore mainly on account of lower income.

Credit Suisse maintained an 'outperform' call on the stock with a target at Rs 200 per share.

Shares of JSW Steel rose nearly 7 percent despite poor March quarter results as brokerages remained bullish on the stock. The company reported a sharp -- 87 percent -- fall in consolidated net profit to Rs 188 crore mainly on account of lower income. The company had posted a consolidated net profit of Rs 1,495 crore in the year-ago quarter.

The stock rose as much as 6.7 percent to Rs 177.65 per share on BSE. At 10:25 am, the stock was trading 5.9 percent higher at Rs 176.20 as compared to a 1 percent or 320 points gain in BSE Sensex at 30,980.

Among brokerages, Credit Suisse maintained 'outperform' call on the stock with a target at Rs 200 per share. The brokerage said that Q4 EBITDA was largely in line with expectations. It added that the company expects near-term domestic pricing to be stable. CS expects H2FY21 to be better for the firm for both unit profitability and volumes.

CLSA maintained an 'underperform' call and raised the target to Rs 170 per share from Rs 166 earlier.

Meanwhile, gross sales fell 20 percent in the quarter to Rs 17,556 crore. Consolidated total income during the January-March period was at Rs 18,009 crore, down from Rs 22,421 crore in the same quarter a year ago. Total expenses were also down at Rs 17,056 crore from Rs 20,058 crore during the quarter ended March 2019.

Consolidated net profit for the full year FY20 fell 48 percent to Rs 3,919 crore, from Rs 7,524 crore in FY19.

JSW Steel shares rise nearly 7% as brokerages remain bullish on stock

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