Discover the significant surge in JSW Steel share price following the Q3 earnings report. Gain expert insights into the factors driving this growth and what it means for investors.
Table of Contents
JSW Steel Share Price Target: Metal sector giant JSW Steel has recently announced the results for the third quarter of the financial year 2023-24 on January 25. The net profit increased 5 times to Rs 2450 crore on a year-on-year basis. The earnings per share (EPS) increased from Rs 2.03 to Rs 9.88. The stock is currently trading at Rs 815. It has given a return of only 12 per cent in a year. Know what to do in this stock after the result.
JSW Steel share price after Q3 Results
On a consolidated basis, revenue from operations rose 7.1 per cent year-on-year to Rs 41940 crore. EBITDA rose 57% to Rs 7180 crore. Profit before tax increased from Rs 978 crore to Rs 3303 crore. Net debt to equity was up 1.02 times and net debt to EBITDA was up 2.64 times.
Sales down 5% year-on-year
Crude steel production rose 12% YoY to 6.87 mt. Average India capacity utilisation stood at 94% as against 89% in the September quarter. Consolidated steel sales jumped 7% year-on-year and declined 5% quarter-on-quarter to 6 mt.
The company has a debt of Rs 79,221 crore.
The company has a total debt of Rs 79,221 crore as on December 31, 2023. The debt stood at Rs 69,195 crore in the September quarter and Rs 69,498 crore on December 2022 basis. Cash and Equivalent on 31 December 2023 basis is Rs 12061 crore as against Rs 11101 crore on September quarter basis. Debt to equity is 1.02 times which was 0.92 times on a September quarter basis and 1.09 times a year ago.
FIIs, mutual funds raise stake
Talking about the shareholding pattern of JSW Steel, the promoters’ shareholding in Q3 was 44.81%, of which 14.8% is pledge. In Q2 too, the promoter holding was 44.8 per cent. The shareholding of FIIs stood at 26.33 per cent in Q3 as against 26.13 per cent in Q2 and 25.98 per cent in the June quarter. DIIs share stood at 9.99 per cent in the December quarter. It was 10.01 per cent in the September quarter and 10.1 per cent in the June quarter. The share of mutual funds in this category has increased from 2.54% to 2.85%.
FAQs
- What factors contributed to JSW Steel share price surge after Q3 results? The surge in JSW Steel share price can be attributed to its impressive Q3 financial performance, strategic expansion initiatives, and favorable industry dynamics.
- Is now a good time to invest in JSW Steel? While past performance is no guarantee of future results, JSW Steel’s strong fundamentals and growth prospects make it an attractive investment opportunity for long-term investors.
- How does JSW Steel plan to sustain its growth momentum? JSW Steel aims to sustain its growth momentum through continued investments in capacity expansion, operational efficiency, and technological innovation, ensuring long-term value creation for stakeholders.
- What challenges does JSW Steel face in the current market environment? Despite its strong performance, JSW Steel faces challenges such as raw material price volatility, regulatory changes, and global economic uncertainties, which require proactive management and strategic agility.
- What are analysts’ projections for JSW Steel’s future performance? Analysts remain optimistic about JSW Steel’s future performance, citing strong demand fundamentals, operational excellence, and strategic initiatives as key drivers of growth and value creation.
- How does JSW Steel differentiate itself from competitors in the steel industry? JSW Steel sets itself apart from competitors through its focus on innovation, operational excellence, and sustainable practices, positioning itself as a preferred choice for customers and investors alike.
Conclusion:
In conclusion, the surge in JSW Steel share price after Q3 results underscores the company’s resilience, agility, and strategic foresight in navigating dynamic market conditions. With a steadfast commitment to excellence and a robust growth trajectory, JSW Steel continues to inspire confidence among investors, offering promising opportunities for value creation and wealth accumulation.