JSW Steel in bullish outlook

This bullish outlook is underpinned by strong operational performance. The company reported its highest-ever quarterly crude steel production at 7.9 million tonnes, marking a 17% year-on-year increase. Indian operations were a primary driver, contributing 7.66 million tonnes, up 16% YoY. Furthermore, the ramp-up of the JSW Vijayanagar Metallics facility has progressed smoothly, achieving 88% utilisation in September. Major market anticipates continued robust growth, projecting India sales volumes to increase by around 17% year-on-year. While a scheduled 150-day shutdown of a blast furnace in Vijayanagar is underway, some inventory stocking is expected to mitigate the impact. The company's improved profitability further supports the investment thesis. The June-quarter results demonstrated significant margin expansion, with Net Profit surging to ₹2,184 crore from ₹845 crore a year ago. EBITDA grew 37.5% YoY to ₹7,576 crore, with margins expanding by nearly 500 basis points to 17.56%, despite broadly flat revenue of ₹43,147 crore. JSW Steel's sustained production growth and operational efficiencies place it favorably, even as the stock trades near its 52-week high of ₹1,178.80. Morgan Stanley's thesis hinges on the continuity of this strong operational trajectory.