INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of JSW Steel cracked 4 per cent on Friday as its Q2 earnings numbers failed to move brokerages
On Thursday, the company's consolidated profit shot up 150 per cent year-on-year for the September quarter
It had reported Rs 836 crore profit in the year-ago quarter.
The stock fell to Rs 338.10 on the BSE in early session, but then recovered
At least three brokerages have slashed target prices on the stock citing concerns over debt and margins
Jefferies has cut the target price to Rs 307 from Rs 336, citing high Ebitda ahead of estimates due to a slightly better average selling
The brokerage said the company's net debt rose sharply
Hence, the rise in debt forecast
Nomura reduced the stock target price to Rs 445, from Rs 484, due to increased debt.
Citi also has cut the target price to Rs 410, from Rs
CLSA too has downgraded the stock to 'underperform' from 'buy', cutting the target price to Rs 375 from Rs 410 per share earlier
The brokerage sees limited upside for the stock and has cut FY20-21 EPS by 4 per cent
The stock has come down about 40 per cent this year, as of the last close
Meanwhile, the company board has approved a proposal of merger of wholly-owned subsidiaries, Dolvi Minerals and Metals Private, Dolvi Coke
Projects, JSW Steel Processing Centres, and JSW Steel (Salav) ("Transferor Companies") with the company
Besides, the company board has cleared a proposal for raising up to Rs 5,000 crore via a rights issue
