Materials| Industrials |Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Supreme Court reinstated strict NCLT terms on May 2, 2025, requiring JSW to fully comply or risk BPSL liquidation; NCLAT relaxations were overturned.</li>
<li>BPSL contributes ~12% of JSW’s capacity and ~10% of EBITDA, with strong operational synergy potential, strategic location, and upcoming captive iron ore integration.</li>
<li>While management is yet to formally decide, JSW is likely to comply; the ~6% correction offers a strong long-term opportunity as BPSL integration strengthens margins.</li>
</ul>


Supreme Court reinstated strict NCLT terms on May 2, 2025, requiring JSW to fully comply or risk BPSL liquidation; NCLAT relaxations were overturned.
BPSL contributes ~12% of JSW’s capacity and ~10% of EBITDA, with strong operational synergy potential, strategic location, and upcoming captive iron ore integration.
While management is yet to formally decide, JSW is likely to comply; the ~6% correction offers a strong long-term opportunity as BPSL integration strengthens margins.


JSW Steel–BPSL Acquisition: Court Verdict, Strategic Importance, and Investment Implications

Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

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Forensic Accounting

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jsw-steel-ltd" target="_blank" data-smartkarma-citation="entities:18561:1" rel="noopener">JSW Steel Ltd (JSTL IN)</a>'s resolution plan for Bhushan Power &amp; Steel was rejected by the Supreme Court, ordering its liquidation.</li>
<li>The rejection undermines JSW Steel's capacity expansion and investment plans, leading to significant financial and strategic setbacks.</li>
<li>The ruling highlights the importance of strict adherence to IBC provisions and raises concerns over the predictability of large asset resolutions.</li>
</ul>



JSW Steel Ltd (JSTL IN)'s resolution plan for Bhushan Power &amp; Steel was rejected by the Supreme Court, ordering its liquidation.
The rejection undermines JSW Steel's capacity expansion and investment plans, leading to significant financial and strategic setbacks.
The ruling highlights the importance of strict adherence to IBC provisions and raises concerns over the predictability of large asset resolutions.


JSW Steel's Tumble: Untangling the Bhushan Power & Steel Supreme Court Setback

<ul>
<li>JSW Steel has grown its domestic steelmaking capacity at CAGR of 14% over the last 2 decades (2x industry) and at 25% lower costs</li>
<li>Gradual capacity ramp-up at recently completed expansion at Vijayanagar (5m) and actively pursuing 10-15mt of new capacity additions over the next 3-5 years</li>
<li>Valuations: JSW Steel trades at premium to its 5yr average EV/EBITDA likely due to a) impending imposition of a 12% safeguard duty b) superior capital allocation etc.</li>
</ul>


JSW Steel has grown its domestic steelmaking capacity at CAGR of 14% over the last 2 decades (2x industry) and at 25% lower costs
Gradual capacity ramp-up at recently completed expansion at Vijayanagar (5m) and actively pursuing 10-15mt of new capacity additions over the next 3-5 years
Valuations: JSW Steel trades at premium to its 5yr average EV/EBITDA likely due to a) impending imposition of a 12% safeguard duty b) superior capital allocation etc.


JSW Steel: Low Cost Capacity Expansion Underpin Premium Valuations

External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>We maintain BUY rating on JSW Steel (JSWS) with an unchanged target price of INR 1,080/share</li><li>We interacted with the management on business outlook</li><li>The ramp-up of recently commissioned 6mn MT steel capacities across Vijayanagar and BPSL plants has accelerated production in Q4FY25 and sales should also remain strong (we estimate 15% YoY consolidated volume growth in Q4FY25)</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We maintain BUY rating on JSW Steel (JSWS) with an unchanged target price of INR 1,080/shareWe interacted with the management on business outlookThe ramp-up of recently commissioned 6mn MT steel capacities across Vijayanagar and BPSL plants has accelerated production in Q4FY25 and sales should also remain strong (we estimate 15% YoY consolidated volume growth in Q4FY25)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JSW Steel: Volume Growth Firms up on Capacity Ramp-Up. Maintain BUY

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

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Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

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Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>In the US, the S&amp;P preliminary services PMI fell to 52.8 (56.5 e / 56.8 p), while the manufacturing PMI edged up to 50.1 (49.8 e / 49.4 p).</li>
<li>The preliminary composite PMI declined to 52.4 (55.6 e / 55.4 p). Separately, the January (final) University of Michigan consumer sentiment index decreased to 71.1 (74.0 p).</li>
<li>Treasuries climbed slightly, following the weaker than expected January preliminary PMI data. </li>
</ul>


In the US, the S&amp;P preliminary services PMI fell to 52.8 (56.5 e / 56.8 p), while the manufacturing PMI edged up to 50.1 (49.8 e / 49.4 p).
The preliminary composite PMI declined to 52.4 (55.6 e / 55.4 p). Separately, the January (final) University of Michigan consumer sentiment index decreased to 71.1 (74.0 p).
Treasuries climbed slightly, following the weaker than expected January preliminary PMI data. 


India

JSW Steel Limited is an integrated steel producer with manufacturing facilities in Karnataka, Tamil Nadu and the western state of Maharashtra. The Company produces products including hot rolled coils, cold rolled coils, wire rods, galvanized coils and sheets.

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JSW Steel Ltd (JSTL IN)

JSW Steel–BPSL Acquisition: Court Verdict, Strategic Importance, and Investment Implications

Supreme Court reinstates strict NCLT terms for JSW, risking BPSL liquidation; JSW likely to comply for long-term opportunity as BPSL integration...

Rahul Jain

JSW Steel's Tumble: Untangling the Bhushan Power & Steel Supreme Court Setback

JSW Steel's resolution plan for Bhushan Power & Steel rejected by Supreme Court, leading to financial setbacks and raising concerns over IBC...

Nimish Maheshwari

JSW Steel: Low Cost Capacity Expansion Underpin Premium Valuations

JSW Steel has significantly increased its steelmaking capacity in India, with plans for further expansion in the next few years, leading to...

Rahul Jain

JSW Steel: Volume Growth Firms up on Capacity Ramp-Up. Maintain BUY

We maintain BUY rating on JSW Steel (JSWS) with an unchanged target price of INR 1,080/share. We interacted with the management on business outlook

HDFC Securities

Lucror Analytics - Morning Views Asia

In the US, the S&P preliminary services PMI fell to 52.8 (56.5 e / 56.8 p), while the manufacturing PMI edged up to 50.1 (49.8 e / 49.4 p).

Lucror Analytics

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52-week Range

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JSW Steel–BPSL Acquisition: Court Verdict, Strategic Importance, and Investment Implications

​Supreme Court reinstates strict NCLT terms for JSW, risking BPSL liquidation; JSW likely to comply for long-term opportunity as BPSL integration...

Rahul Jain

JSW Steel's Tumble: Untangling the Bhushan Power & Steel Supreme Court Setback

​JSW Steel's resolution plan for Bhushan Power & Steel rejected by Supreme Court, leading to financial setbacks and raising concerns over IBC...

Nimish Maheshwari

JSW Steel: Low Cost Capacity Expansion Underpin Premium Valuations

​JSW Steel has significantly increased its steelmaking capacity in India, with plans for further expansion in the next few years, leading to...

Rahul Jain

JSW Steel: Volume Growth Firms up on Capacity Ramp-Up. Maintain BUY

We maintain BUY rating on JSW Steel (JSWS) with an unchanged target price of INR 1,080/share. We interacted with the management on business outlook

HDFC Securities

Lucror Analytics - Morning Views Asia

In the US, the S&P preliminary services PMI fell to 52.8 (56.5 e / 56.8 p), while the manufacturing PMI edged up to 50.1 (49.8 e / 49.4 p).

Lucror Analytics

Supreme Court reinstates strict NCLT terms for JSW, risking BPSL liquidation; JSW likely to comply for long-term opportunity as BPSL integration...

JSW Steel's resolution plan for Bhushan Power & Steel rejected by Supreme Court, leading to financial setbacks and raising concerns over IBC...

JSW Steel has significantly increased its steelmaking capacity in India, with plans for further expansion in the next few years, leading to...