Morgan Stanley has maintained its Equal-weight rating on JSW Steel with a target price of ₹1,000, slightly below the current market price of ₹1,009.20, indicating a modest downside of 0.9%. The brokerage highlighted a mixed Q4 performance, with standalone EBITDA coming in 5% below estimates, while consolidated EBITDA was slightly above projections.
Weaker performance from overseas subsidiaries weighed on overall results. However, management remains optimistic about a turnaround in FY26, driven by higher steel prices and improving demand trends.
The company expects domestic industry demand to grow by 8–10% in FY26, and has guided for 10% volume growth during the year. Additionally, net debt declined quarter-on-quarter, supported by improved cash generation and working capital release.
On the BPSL front, JSW Steel management believes it has implemented a compliant resolution plan and is currently consulting legal advisors for further remedies.
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