Three metal giants are in focus! These are Tata Steel, JSW Steel, Jindal Steel & Power (JSPL). However, sparing JSPL, bears run over Tata Steel and JSW Steel as their shares tumbled between 1% to 2.5% on March 4th. The reason for profit booking comes after leading brokerage CLSA downgraded its rating on Tata Steel and JSW Steel. But the only reason why JSPL escaped the wrath of bears is because CLSA maintained its stance on the company while raising the target price.
Here's what investors need to know!
Tata Steel:
Tata Group-backed steel maker ended at Rs 153.10 apiece, down by 1.32% on BSE with a market cap of Rs 1,91,121.51 crore on March 4th. Despite the latest fall, Tata Steel stock is closer to its 52-week high of Rs 156.10 apiece, while trading higher by 51% from its 52-week low of Rs 101.65 apiece. In a year, Tata stock surged by 45% on the BSE as of now.
Leading brokerage CLSA has downgraded its stance on Tata Steel to Sell, while also trimming its target price to Rs 135 per share from earlier Rs 145 per share. The outlook is said as Negative.
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 35 million tonnes per annum. It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world.
Among its corporate actions, Tata Steel has delivered 29 dividends since May 24, 2001, while it has a dividend yield of 2.35% currently. The company carried one stock split in the ratio of 1:10 on July 28, 2022. However, Tata Steel has not declared any bonus issues.
JSW Steel:
Among the metal stocks, JSW Steel took a massive hit on March 4th. The stock price ended at Rs 823.25 apiece, down by 2.5% on BSE with a market cap of Rs 2,01,322.00 crore. Nevertheless, JSW Steel is also near its 52-week high of Rs 895.60 apiece, while trading higher by 27% from its 52-week low of Rs 649.75 apiece. In a year, JSW Steel shares zoomed by 22.12%.
Just like Tata Steel, CLSA also downgraded JSW Steel to Sell, alongside trimming the target price at Rs 730 per share from Rs 810 per share. The outlook is negative.
Over the last three decades, JSW Steel has grown from a single manufacturing unit to become India's leading integrated steel company with a capacity of 29.7 MTPA in India and the USA. Its next phase of growth in India will take its total capacity to 38.5 MTPA by FY25. The Company's manufacturing unit in Vijayanagar, Karnataka is the largest single-location steel-producing facility in India with a current capacity of 12.5 MTPA.
JSW Steel has also not issued any bonus shares but went ex-split for a stock split ratio of 1:10 on January 4, 2017. The company has delivered 25 dividends since August 2002. Currently, JSW Steel has a dividend yield of 0.41%.
JSPL:
Unlike JSW Steel and Tata Steel, CLSA has upgraded its target price. JSPL share price hit a new 52-week high of Rs 849.70 apiece, before ending at Rs 839.55 apiece, marginally up on BSE with a market cap of Rs 85,641.50 crore. JSPL shares gained by 69% from its 52-week low of Rs 503 apiece. In a year, the stock is up by 44.5%.
CLSA has maintained its underperform on JSPL, with a Neutral target, while hiking its target price to Rs 840 per share from Rs 820 per share.
JSPL is an industrial powerhouse with a dominant presence in the steel, mining and infrastructure sectors. With an investment of 12 billion USD across the globe, the Company is continuously scaling its capacity utilization and efficiencies to capture opportunities for building a self-reliant India.
The company has delivered up to 22 dividends since September 3, 2001. While it carried bonus shares in the ratio of 5-for-1. However, JSPL has been split two times. Firstly, it announced a stock split of 1:2 with effect from December 29, 2003, meaning, the face value of Rs 10 split into Rs 5 per share. A second stock split followed in the ratio of 1:5, where the face value of Rs 5 is split into Rs 1 effective from January 28, 2008. Currently, JSPL has a dividend yield of 0.24%.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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