Report of JSW Steel

HDFC Securities has down graded JSW Steel to sell rating from under performer with target price of Rs 716 in its May 06, 2008 report. "We have revised our fully diluted FY09E EPS estimates downwards by 7.7% to Rs. 102.3 to factor in higher raw material costs and higher financial expenses for debt on the accelerated capex. The stock is currently trading at 8.8x FY09E EPS and the risk reward is unfavourable due to the rising raw material cost pressure, Government intervention to control domestic prices through export taxes and diversification into other businesses " according to HDFC Securities