Morgan Stanley begins tactical call on JSW Steel; see a more than 80% chance of performing better than broader markets

Morgan Stanley said the share price of JSW Steel could exceed the broader market in the next 60 days better than the broader market. The broker started a tactical call on the stock with an ‘overweight’ rating and set a £ 1,300 price target, indicating an 18 percent tight potential. “We estimate that there is about 80 percent (or ‘highly likely’) probability for the scenario,” the broker added. Morgan Stanley emphasized that India’s steel industry is at the beginning of a distributed expansion cycle. Domestic steel prices are expected to rise steadily as demand incrementally improves, supported by China’s anti-development measures and favorable global macro factors. In addition, there is optionality when the protection of security is expanded. Against this background, JSW Steel is well positioned because of its high domestic share that is skewed to flat steel. The expansion of the margin is expected from HRC price increases and the strong growth of the volume. Morgan Stanley said the share would do well despite rich valuations. In his bull case, the broker sees a supportive global macro environment that increases steel prices and volumes in the medium term, which is further aided by the likelihood of expanding the protection service. In the bear case, weaker conditions for demand supply or lower steel prices may weigh the performance. Morgan Stanley estimates the cost of equity at 12 percent, terminal roe at 15 percent and terminal growth at 3 percent in this scenario. Upside risks include stronger than expected domestic demand, faster project detection and higher steel prices, while disadvantage risks cover poorer price or volume momentum, delays in the commissioning of new capacity and higher than expected iron ore costs of auction mines. JSW Steel Q1 Results JSW Steel reported a consolidated net profit of £ 2,184 crore for Q1FY26, an annual 158 percent of £ 845 in Q1FY25. Succession, profit increased by 45 percent from £ 1,503 crore in Q4FY25. The revenue from operations stood at £ 43.147 crore, an annual 0.5 percent year -on -year, but year -on -year. Total expenses for the quarter fell by 3.3 percent year -on -year to £ 40,325 crore and fell consecutively by 6.3 percent, reflecting the improved cost effectiveness. JSW Steel Stock Performance The steel stock has risen by 16 percent over the past one year, 9.5 percent in six months and 1 percent over the past three months. Over five years, JSW Steel MultiBagger yields yielded, which rose nearly 300 percent. The share hit its 52 -week peak of £ 1,112 in September last year and its 52 -week low of £ 879.60 in January 2025. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.