JSW Steel Stock Under Pressure Post Q4 Result, Dividend Announcement; Should You Buy, Sell or Hold?

JSW Steel Stock Price: Shares of JSW Steel remained under pressure on Monday, May 26, days after announcing fourth quarter company earnings on Friday. The company had reported a 109% sequential increase in its net profit during Q4FY25 and also announced a dividend.

JSW Steel shares opened higher at Rs 1013.5 per share on BSE on Monday, but the company's stock reversed its gains and was trading 0.52% lower at Rs 1003.3 per share on BSE on Friday at 11:20 am.

JSW Steel Stock Price Recommendation

JSW Steel reported a decent quarterly performance during the March quarter supported by strong volume and deflated cost, noted Motilal Oswal on Monday adding that JSW Steel is well positioned with new capacities, strong domestic demand and rising share of value added proportion in the sales mix. The brokerage had fixed a target price of Rs 1190 per share.

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"We expect strong revenue/EBITDA/APAT performance, driven by healthy volume, improving realization and muted costs. This will generate CFO of +INR600b over FY26-27E, which will help JSTL to fund its proposed capex of INR650b during FY25-27E. At CMP, JSTL trades at 7x FY27E EV/EBITDA and we largely maintain our FY26/FY27 EBITDA estimates. We reiterate our BUY rating on the stock with a TP of INR1,190 (premised on 8x EV/EBITDA on FY27 estimate)," noted Motilal Oswal.

The diversified steel maker is aggressively expanding its operations and increasing capacity to meet rising steel demand. With a focus on value-added products, the company is also laying emphasis on scaling up domestic production capacity, according to ICICI Direct. The brokerage had maintained a 'Buy' rating for JSW Steel stock.

"With a strategic capacity expansion in place, robust steel demand tailwinds and improving profitability metrics, JSW Steel is well-positioned to deliver record performance in the years ahead. We retained our BUY rating on the stock and valuing it at ₹ 1,200 i.e. 8.5x FY27E EV/EBITDA," noted ICICI Direct.

"We tweak our steel realisation assumptions by +3.1%/ +2.3% but lower our standalone volume assumptions by 8%/ 5%, leading to a +3%/ +6% change in FY26/ 27 consolidated EBITDA. We maintain a HOLD rating at a revised TP of INR 905 (earlier INR 870) basis FY27E EV/ EBITDA target multiple of 7.5x," noted Antique Stock Broking Limited underlining JSW Steel's lower-than estimated Q4 result .

JSW Steel Q4 Result and Dividend

JSW Steel revealed a significant jump in its net consolidated profit for the March quarter of the financial year 2024-25, showcasing a remarkable 109% rise to Rs 1503 crore. This impressive performance not only highlights the company's strong operational efficiency and profitability but also marks a moment of celebration for its shareholders with the announcement of a 280% dividend. This move underscores JSW Steel's commitment to delivering value to its investors and its robust financial health.

The company's financial results have been eagerly anticipated, and this latest report did not disappoint. The substantial increase in profit and the generous dividend payout reflect the company's successful strategies and strong market presence. As a multinational steel producer, JSW Steel has consistently demonstrated its ability to navigate the complexities of the global steel market, and these results are a testament to its resilience and strategic planning.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.