Shares of JSW Steel Ltd. were rated ‘Hold’ by brokerage firm IDBI Capital following the company’s third-quarter results, which came in above the firm’s estimates. While the performance reflected operational resilience and stable demand conditions, the brokerage maintained a cautious stance on the stock amid near-term pricing and margin considerations.

IDBI Capital noted that JSW Steel’s Q3 earnings benefited from improved operational efficiencies and steady domestic demand, helping the company outperform expectations. However, the brokerage said that much of the positive outlook is already priced into the stock, limiting the scope for sharp upside in the near term.

Management commentary during the results indicated optimism on steel prices, particularly hot rolled coil (HRC), with expectations of further improvement driven by strong seasonal demand. This anticipated recovery, coupled with ongoing infrastructure spending and manufacturing activity, is expected to support volumes and realizations in the coming quarters.

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At the same time, analysts flagged potential headwinds, including volatility in global steel prices, raw material cost fluctuations, and uncertainties in international demand. These factors, IDBI Capital said, warrant a balanced approach despite the company’s strong execution and scale advantages.

Based on its assessment, IDBI Capital reiterated a ‘Hold’ rating on JSW Steel shares and maintained its target price, advising investors to wait for clearer visibility on sustained price recovery and margin expansion before taking fresh positions.

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