This steel stock recovered 11% from 52-week-low ahead of dividend issue of 1735%

This steel stock recovered 11% from 52-week-low ahead of dividend issue of 1735%

Market


JSW Steel Ltd is a large-cap company with a market valuation of 139,920 Crore that is engaged in the metal-ferrous industry. JSW is a multinational corporation with operations in the USA, Europe, Chile, India, and the USA. The company has a long-standing presence in many industries, including those in steel, energy, infrastructure, cement, paints, and venture capital. Most recently, the chairman of the company, Sajjan Jindal, announced that JSW Steel would invest Rs. 10K Cr. to augment the consumption of renewable energy in order to substitute thermal power.

For the fiscal year that ended on March 31, 2022, the Board of the company has proposed a final dividend of Rs. 17.35, or 1735 per cent, per fully paid-up equity share of Re. 1. This comes in a dividend yield of 3% at the current share price of 577.50. For the purpose of the same, the company has said in BSE exchange filing that “In compliance with Regulation 42 and other applicable Regulations, if any, of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform that 6th July 2022 to 08th July 2022 (both days inclusive) has been fixed as the Book Closure period for the purpose of determining the eligible shareholders for the payment of dividend on the Equity Shares of Re. 1/- each of the Company, for the year ended 31.03.2022.”

The shares of JSW Steel closed at 577.50 on Friday up by 2.30% from the previous close of 564.50. The stock has fallen 14.16 per cent in the last year, and so far in 2022, it has fallen 13.42 per cent according to a year-to-date (YTD) basis. On the NSE the stock touched a 52-week-high of 790 on 19th April 2022 and a 52-week-low of 520.05 on 26th May 2022 which means at the current level the stock is trading 26.89% below the 52-week-high and 11.04% above from its 52-week-low. The stock is now trading above the 5 days, 10 days, and 20-day moving averages but below the 50 days, 100 days, and 200-day Simple Moving Average (SMA). While the stock is trading above the 5 days, 10 days, and 20-day moving averages but below the 50-day, 100 days, and 200-day moving averages, according to data from the exponential moving average (EMA). The RSI indicator is neither oversold or overbought at Rs. 50.71 as of July 1, 2022. The brokerage firm Geojit has maintained a hold rating on the stock with a revised target price of Rs. 614 based on 5.5x FY24E EV/EBITDA.

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