JSW Steel, an integrated steel manufacturer, Q4FY21 EBITDA was a beat. EBITDA jumped 184% YoY at Rs 84 billion mainly on sharp increase in realization; sales volumes grew 11% YoY to 4 million tonnes. Despite cash outflows of Rs 150 billion during FY21 (related to Bhushan Power acquisition and expansions), its consolidated net debt declined by Rs 8.6 billion in FY21.

Commenting on the result review, IDBI Capital said, "We raise our FY22/FY23 realization and EBITDA estimates given sharp rise in steel prices during Q4FY21 which we expect to sustain. Our FY22/FY23 EBITDA is revised higher by 22%/17%.

We raise our EV/EBTIDA multiple to 7.5x FY23 EBITDA (earlier 6x) as JSW's expansion plans provide strong volume growth visibility over FY21-FY25. We derive a target price of Rs 750 (earlier Rs 387) and upgrade the stock to an 'ACCUMULATE' from 'HOLD' earlier."

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