JSW Steel - Improvement likely, but not immediately - Emkay

- Iron ore availability in Karnataka likely to improve gradually with more mines coming back into operations. NMDC fines prices however might see an up tick

- Capacity utilization at 80% for FY14 looks reasonable with very limited downside risk even without 'B' category mines. Capex for next 2 years seen at Rs 90 bn

- Steel demand in the short- medium term however looks weak and thus attempts of price hikes may not result into better realizations. Some improvement expected in H2FY14

- Revising our FY14 nos and introducing FY15 estimates with a conservative approach. Value the company at 5xFY15 EV/ EBITDA to arrive at a target price of Rs 770; Maintain Hold

Source : Equity Bulls

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