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JP Morgan upgrades JSW Steel, citing weaker rupee, margin expansion

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Reuters
Last Updated : Sep 18 2013 | 11:05 AM IST

Reuters Market Eye - J.P. Morgan upgrades JSW Steel Ltd to "overweight" from "neutral" and raises its target price to 850 rupees from 720, citing rupee boost to export earnings followed by margin expansion from new projects.

The investment bank says JSW is a key beneficiary of a weaker rupee and expects exports to be around 25 percent of the company's total sales in FY14.

Domestic cost pressures have peaked out, while iron ore availability should improve gradually, allowing higher utilisation for the company, it added.

($1 = 63.2300 rupees)

(Reporting by Abhishek Vishnoi)

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First Published: Sep 18 2013 | 10:54 AM IST

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