JSW Steel - In-line performance - Emkay

Reco: ACCUMULATE
CMP: Rs738
Target Price: Rs743

- Performance broadly in line with standalone EBITDA/ tonne at Rs 7025 and steel realizations at Rs 41883/ tonne; Sales volume at 2.17 mt shows strong focus on marketing strategy

- Standalone and conso APAT stood at Rs 3.99 bn and Rs 2.67 bn respectively adjusted for Rs 4.22 bn and Rs 4.23 bn forex gain; Conso revenue came at Rs 95.1 bn, down 4% QoQ

- Subsidiary performances subdued with EBITDA loss of US$0.07 mn in Chile and 54% fall in EBITDA at US plate & pipe mill; Ispat EBITDA/ tonne contracted to Rs 1581

- Despite delay developments on Iron ore mining in Karnataka likely to be positive; Maintain Accumulate with TP of Rs 743 valuing the company (with Ispat) at 5.5xFY14 EV/ EBITDA

Source : Equity Bulls

Keywords