JSW Steel Remains The Best Volume Play In The Sector: Motilal Oswal
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Motilal Oswal Report
We are raising our FY22-23E earnings per share for JSW Steel Ltd. by 42-48% to factor in improved steel price outlook and accretion from the acquired assets of Bhushan Power and Steel Ltd.
We see the company as a play on volume growth in the Indian steel sector.
Over FY21-23E, we estimate 16% volume compound annual growth rate (excluding Bhushan Power and Steel), which should drive 22%/37% Ebitda/EPS CAGR.
We also estimate net debt to fall by 26% over FY21-23E to Rs 483 billion (1.7 times FY23E Ebitda) despite an ongoing capex program to expand its upstream and downstream steel capacities.
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