The deal values the BPSL business at roughly ₹53,000 crore, with JFE investing ₹15,750 crore for its stake. | Photo Credit: FRANCIS MASCARENHAS
Motilal Oswal notes that JSW Steel’s restructuring and new joint venture will enable the company to unlock substantial value created through the turnaround of BPSL, while simultaneously lowering debt and supporting its long-term expansion plan toward 50 mtpa capacity. With JFE Steel already holding around 15 per cent in JSW Steel, the brokerage highlights that the restructuring will also lift promoter ownership to 46.74 per cent. It has reiterated buy at a target price of ₹1,350.
Global brokerages Morgan Stanley and JP Morgan have overweight ratings on the stock at ₹1,300 and ₹1,250 target price, respectively. Jefferies reaffirmed buy at ₹1,400, and BoFA Securities remains positive with a buy call at ₹1,290.
Meanwhile, Nuvama Institutional Equities has maintained a reduce rating at 1,050, flagging expensive valuation and potential earnings downgrade amid soft steel prices. CLSA has an underperform rating on the stock at ₹890 target price, while Citi maintained sell call at ₹915.
Elara Securities maintained a sell rating on JSW Steel with a target price of ₹994, citing persistent near-term headwinds.
According to Elara, the recent positives for the stock are already priced in. Domestic HRC prices have corrected by about ₹2,190 per tonne so far in Q3FY26 compared with the Q2 average, pointing to weaker realisations. Costs are also expected to rise, due to coal prices and operational disruptions.
Export prospects remain constrained due to global tariff barriers and the rollout of Europe’s Carbon Border Adjustment Mechanism (CBAM), limiting shipment flexibility and pricing power. Elara warned these factors could compress margins in the near term, reinforcing its bearish stance.
JSW Steel closed flat at ₹1150.50 on the BSE, after gaining 1.5 per cent in early trade to a high of ₹1,165 against the previous close of ₹1147.50.
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Published on December 4, 2025
