India's JSW Steel to gain from JFE JV but headwinds persist, brokerage says

JFE Holdings

05/12/2025 07:35

** Deal with Japan's JFE Steel to help India's JSW Steel JSTL.NS reduce debt and fund growth but near-term headwinds persist, ElaraCapital says

** Retains "sell" rating, 994 rupees TP; JSTL, on an avg, rated "hold" with median TP 1,207.50 rupees - data compiled by LSEG

** Deal will allow for an effective net debt reduction of approx 266 bln rupees for JSW Steel - brokerage

** Adds, phased funding improves visibility on liquidity support; deal to widen steel products portfolio, giving JFE access to ex-Japan markets and JSW expansion opportunities at India plants

** Recent positives already reflected in stock price amid soft near-term price realisations, elevated costs, and exports under pressure due to EU's carbon tax roll out - brokerage

** JSTL up 0.5% on the day, up over 28% YTD

 (Reporting by Hritam Mukherjee in Bengaluru)

 ((Hritam.Mukherjee@thomsonreuters.com;))