JSW Steel: Lower costs, prices should boost margins in second half of FY23

Given fair value estimates of Rs 530 to Rs 610, investors need to be cautious about the company

JSW Steel, the integrated steel major, reported moderate July-September quarter (Q2) results. But the market response was positive with the stock rising 3.6 per cent over two sessions (Monday and Tuesday), which suggests the Street was expecting worse. The stock is up another 3.6 per cent Thursday.

The company reported steel sales volumes of 5.01 million tonnes (MT) in standalone operations, at earnings before interest, taxes, depreciation, and amortisation (EBITDA) per tonne of Rs 3,477. The consolidated topline was Rs 41,778 crore, up 29 per cent year-on-year (YoY), and up 10 per cent quarter-on-quarter (QoQ). The standalone EBITDA for Q2