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Surge in steel production strengthens JSW Steel

Capital Market / 14:13 , Nov 05, 2009

JSW Steel rose 4.25% to Rs 751.70 at 14:14 IST, extending rise for the second consecutive session, after crude steel production rose 34% to 453,000 tonnes in October 2009 over October 2008.

The announcement was made during trading hours on Wednesday, 4 November 2009, when the stock had jumped 5.94% to Rs 721.05

Meanwhile, the BSE Sensex was down 50.96 points, or 0.32%, to 15795.56.

On BSE, 4.74 lakh shares were traded in the counter as against an average daily volume of 5.11 lakh shares in the past one quarter.

The stock hit a high of Rs 760 and a low of Rs 715.25 so far during the day. The stock had hit a 52-week high of Rs 935 on 21 October 2009 and a 52-week low of Rs 161.15 on 9 March 2009.

The stock had underperformed the market over the past one month till 4 November 2009, falling 15.37% as compared to the Sensex 7.13% fall. It underperformed the market in past one quarter, falling 1.03% as against 0.51% rise in the Sensex.

The large-cap steel maker has an equity capital of Rs 187.05 crore. Face value per share is Rs 10.

The current price of Rs 751.70 discounts the company's Q2 September 2009 annualised EPS of Rs 96.56, by a PE multiple of 7.78.

Production of flat products, used in automobiles, rose 19% to 296,000 tonnes, while long products, used in construction and railway lines, rose 145% to 75,000 tonnes in October 2009 over October 2008.

JSW Steel's net profit rose 42.2% to Rs 451.54 crore on 6.7% rise in net sales to Rs 4553.88 crore in Q2 September 2009 over Q2 September 2008.

JSW Steel is part of the O P Jindal Group with interests in mining, carbon steel, power and oxygen.

Promoters have pledged 3.49 crore shares representing 18.66% of the equity capital of the company. Total promoters shareholding in the company is 45.01% (as on June 2009).

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