- JSW Steel’s net income for Q1 is 8.45 billion rupees, a 64% decrease year-over-year, missing the estimate of 12.8 billion rupees.
- Revenue stands at 429.4 billion rupees, a slight increase of 1.7% compared to the previous year, surpassing the estimate of 423.34 billion rupees.
- Total costs have risen to 417.2 billion rupees, marking a 6.9% increase year-over-year.
- Raw material costs have decreased by 7.8% year-over-year, totaling 214.6 billion rupees.
- Expenses for purchased power, fuel, and transmission have increased by 3.4% year-over-year to 39.1 billion rupees, above the estimated 36.69 billion rupees.
- Other income has dropped by 50% year-over-year, amounting to 1.64 billion rupees.
- Operating EBITDA is reported at 55.1 billion rupees, slightly below the estimate of 57.81 billion rupees.
- EBITDA margin stands at 12.8%, compared to last year’s 16.7%.
- The company completed the transfer of Slurry Line to JSW Infra for 17 billion rupees.
- Shares of JSW Steel fell by 4.5% to 889.45 rupees, with 3 million shares traded.
- The stock currently has 16 buy ratings, 7 hold ratings, and 7 sell ratings from analysts.
JSW Steel Ltd on Smartkarma
Analysts on Smartkarma have been closely monitoring JSW Steel Ltd, with recent reports providing a mixed outlook on the company’s performance. Trung Nguyen from Lucror Analytics highlighted that while the Q4/23-24 results were soft, the full-year numbers were decent with robust operational stats. The share of value-added products was high and expected to increase further. Despite some concerns about liquidity, there is optimism for a stronger FY 2024-25 with higher revenue and earnings anticipated. Steel prices are expected to remain stable, presenting potential upside, although this could be dampened by increased debt due to growing capex.
Another analyst, Leonard Law, CFA, also expressed a bearish sentiment towards JSW Steel Ltd in their Morning Views report on Smartkarma. Offering fundamental credit analysis and trade recommendations, the report indicated a cautious stance on the company. Details on key company-specific developments were shared, emphasizing the importance of market indicators and a macroeconomic outlook. Leonard Law’s report provides a comprehensive overview of the factors influencing JSW Steel Ltd‘s position in the market, contributing valuable insights for investors looking to navigate the steel industry landscape.
A look at JSW Steel Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
JSW Steel Ltd, an integrated steel producer with manufacturing facilities across India, shows a promising long-term outlook based on its Smartkarma Smart Scores. With a high Value score of 4, the company is deemed to be attractively priced compared to its intrinsic value. Additionally, having a Dividend score of 3 indicates a moderate but stable dividend payout, which can be appealing to income-seeking investors. While the Growth and Momentum scores stand at 3 each, suggesting a steady pace of expansion and market performance, the Resilience score of 2 indicates some vulnerability to economic downturns.
Overall, JSW Steel Ltd seems well-positioned for long-term success, balancing strong value, moderate dividend returns, and steady growth momentum. With a diversified product portfolio including hot rolled coils, cold rolled coils, wire rods, and galvanized coils and sheets, the company demonstrates resilience in the competitive steel industry. Investors may find JSW Steel Ltd an attractive prospect for potential growth and value opportunities in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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