An equity analyst tracking metals and steel sector cautions against the bullish reports being published by a couple of bro-kerage houses for JSW Steel. No doubt this leading steel com-pany is well managed, but the analyst opines that the steel in-dustry is still facing several challenges globally, and it may take several years to recover. In these circumstances, the chances ofthe scrip crossing Rs. 1200-mark appear to be remote. Little wonder, in the second quarter of FY 16, the company’s saleshave come down by 21.5 per cent to Rs. 10,743 crore as com-
pared to Rs. 13,692 crore in the corresponding quarter last year and the profit at net level has nosedived from Rs 749 crore to Rs 118 crore, a drop of 84.2 per cent. The second quarter results would have been worse but for the good show by a couple of overseas subsidiaries. The disastrous economic meltdown in China will not allow the steel industry to stage a recovery for 6 to & quarters, it is widely believed. The JSW stock price will hover between Rs. 800 and Rs. 1000, the analyst insists.
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