Stock Views on JSW Steel, Hindalco Industries,

Citigroup on JSW STEEL

Citigroup has maintained its ‘sell’ rating on JSW Steel while cutting its target price to Rs 185 from Rs 190. “We are revising our estimates to account for lower raw material prices, domestic realisation, revised volumes and capex, and weaker performance by the US subsidiary,” the investment bank said in a report. “The benefit of lower raw material prices is largely offset by weaker prices,” it said. “We expect total net debtequity ratio by March 2009 to be approximately 2x (times), making JSTL (JSW Steel) riskier in a downturn,” Citi added.

JP Morgan on HINDALCO

JP Morgan is reviewing its earnings estimates for Hindalco amid concerns over the outlook of US-based Novelis, which the Aditya Birla Group has acquired a couple of years back. Novelis reported a sharp decline in earnings in the December quarter. The brokerage has a 'neutral' rating on the stock. " On the operating front, we are negatively surprised by the sharp decline in shipments (-13% y/y) While there is a strong element of de-stocking (similar to steel), given Novelis' large exposure to Europe and North America, we expect shipments to remain weak well into the second half of financial year 2009-10 (estimated)," the investment bank said in a report.