JSW Steel - Rating: Sell ;Target Price: Rs730 - Centrum

- We expect sales volumes of ~3 MT, lower marginally QoQ as exports volumes are expected to be slightly lower than 0.84 MT seen during Q2. Realizations are expected to be higher by 1% QoQ on account of domestic market price increases.

- EBITDA is expected to be marginally lower by 2.7% QoQ. EBITDA margin is expected to be higher by 33bps QoQ at 17.2% with blended cons. EBITDA/tonne of Rs7111 (up 3% QoQ) aided by higher proportion of domestic sales.

- Consolidated adj-PAT is expected at Rs4572mn. Forex losses would be absent from the current quarter due to hedging of outstanding payables.

Source : Equity Bulls

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