Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Supreme Court reinstated strict NCLT terms on May 2, 2025, requiring JSW to fully comply or risk BPSL liquidation; NCLAT relaxations were overturned.</li>
<li>BPSL contributes ~12% of JSW’s capacity and ~10% of EBITDA, with strong operational synergy potential, strategic location, and upcoming captive iron ore integration.</li>
<li>While management is yet to formally decide, JSW is likely to comply; the ~6% correction offers a strong long-term opportunity as BPSL integration strengthens margins.</li>
</ul>


Supreme Court reinstated strict NCLT terms on May 2, 2025, requiring JSW to fully comply or risk BPSL liquidation; NCLAT relaxations were overturned.
BPSL contributes ~12% of JSW’s capacity and ~10% of EBITDA, with strong operational synergy potential, strategic location, and upcoming captive iron ore integration.
While management is yet to formally decide, JSW is likely to comply; the ~6% correction offers a strong long-term opportunity as BPSL integration strengthens margins.


JSW Steel–BPSL Acquisition: Court Verdict, Strategic Importance, and Investment Implications

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

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Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: MGM China, Seazen Group, Tata Motors, JSW Steel</li>
<li>
<p>In the US, nonfarm payrolls came in meaningfully above estimates at 177 k in April (138 k e / 185 k revised p), albeit the March numbers were revised downwards to 185 k (from 228 k). The unemployment rate was unchanged at 4.2%. The average hourly earnings rose 3.8% y-o-y (3.9% e / 3.8% p) and 0.2% m-o-m (0.3% e / 0.3% p).</p>
</li>
<li>
<p>The Chinese Ministry of Commerce said in a statement on Friday that US officials have “repeatedly stated that they are willing to negotiate with China on tariff issues”, and added that China is currently evaluating the situation.</p>
</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: MGM China, Seazen Group, Tata Motors, JSW Steel

In the US, nonfarm payrolls came in meaningfully above estimates at 177 k in April (138 k e / 185 k revised p), albeit the March numbers were revised downwards to 185 k (from 228 k). The unemployment rate was unchanged at 4.2%. The average hourly earnings rose 3.8% y-o-y (3.9% e / 3.8% p) and 0.2% m-o-m (0.3% e / 0.3% p).


The Chinese Ministry of Commerce said in a statement on Friday that US officials have “repeatedly stated that they are willing to negotiate with China on tariff issues”, and added that China is currently evaluating the situation.



Market & Forensics Analyst, Beat the Street

Nimish Maheshwari

Market & Forensics Analyst

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Forensic Accounting

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jsw-steel-ltd" target="_blank" data-smartkarma-citation="entities:18561:1" rel="noopener">JSW Steel Ltd (JSTL IN)</a>'s resolution plan for Bhushan Power &amp; Steel was rejected by the Supreme Court, ordering its liquidation.</li>
<li>The rejection undermines JSW Steel's capacity expansion and investment plans, leading to significant financial and strategic setbacks.</li>
<li>The ruling highlights the importance of strict adherence to IBC provisions and raises concerns over the predictability of large asset resolutions.</li>
</ul>



JSW Steel Ltd (JSTL IN)'s resolution plan for Bhushan Power &amp; Steel was rejected by the Supreme Court, ordering its liquidation.
The rejection undermines JSW Steel's capacity expansion and investment plans, leading to significant financial and strategic setbacks.
The ruling highlights the importance of strict adherence to IBC provisions and raises concerns over the predictability of large asset resolutions.


JSW Steel's Tumble: Untangling the Bhushan Power & Steel Supreme Court Setback

Tanvi Arora

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Continuum Green, JSW Steel</li>
<li>US President Donald Trump has told reporters that US tariffs on China will "come down substantially, but it won't be zero. It used to be zero".</li>
<li>Meanwhile, Mr Trump stated that he has "no intention of firing" Fed Chairman Jerome Powell, but would like to see him be "a little more active" in lowering interest rates.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Continuum Green, JSW Steel
US President Donald Trump has told reporters that US tariffs on China will "come down substantially, but it won't be zero. It used to be zero".
Meanwhile, Mr Trump stated that he has "no intention of firing" Fed Chairman Jerome Powell, but would like to see him be "a little more active" in lowering interest rates.


Steel Authority of India / Equity Bottom-Up

<ul>
<li>SAIL has been a consistent under-performer despite having huge iron ore reserves, multi-location steel plants and wide product spectrum and exclusive sales to Indian Railways</li>
<li>Legacy plants, ageing manpower and operational inefficiencies have resulted in slower growth compared to peers and a significant loss in overall market share, high inventories and single digit RoEs</li>
<li>SAIL trades at 0.8x P/B, in line with history, but weak volume visibility and elevated debt warrant a deeper discount—0.6x book better reflects risk-reward, in our view.</li>
</ul>


SAIL has been a consistent under-performer despite having huge iron ore reserves, multi-location steel plants and wide product spectrum and exclusive sales to Indian Railways
Legacy plants, ageing manpower and operational inefficiencies have resulted in slower growth compared to peers and a significant loss in overall market share, high inventories and single digit RoEs
SAIL trades at 0.8x P/B, in line with history, but weak volume visibility and elevated debt warrant a deeper discount—0.6x book better reflects risk-reward, in our view.


Steel Authority of India: Weak on Expansion

India

JSW Steel Limited is an Indian multinational steel company. It manufactures and sells a wide range of steel products, including hot rolled, cold rolled, galvanized, and color-coated steel, as well as TMT bars, wire rods, and alloy steel products, serving various industries such as automotive, construction, and infrastructure. The company is headquartered in Mumbai, Maharashtra, India, and was founded in 1982.

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JSW Steel (JSTL IN)

JSW Steel–BPSL Acquisition: Court Verdict, Strategic Importance, and Investment Implications

Supreme Court reinstates strict NCLT terms for JSW, risking BPSL liquidation; JSW likely to comply for long-term opportunity as BPSL integration...

Rahul Jain

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: MGM China, Seazen Group, Tata Motors, JSW Steel

Lucror Analytics

JSW Steel's Tumble: Untangling the Bhushan Power & Steel Supreme Court Setback

JSW Steel's resolution plan for Bhushan Power & Steel rejected by Supreme Court, leading to financial setbacks and raising concerns over IBC...

Nimish Maheshwari

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Continuum Green, JSW Steel

Lucror Analytics

Steel Authority of India: Weak on Expansion

Despite its vast resources, SAIL's operational inefficiencies have led to underperformance and a loss in market share. A deeper discount on its...

Rahul Jain

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52-week Range

Market Cap (USDm)

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JSW Steel–BPSL Acquisition: Court Verdict, Strategic Importance, and Investment Implications

​Supreme Court reinstates strict NCLT terms for JSW, risking BPSL liquidation; JSW likely to comply for long-term opportunity as BPSL integration...

Rahul Jain

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: MGM China, Seazen Group, Tata Motors, JSW Steel

Lucror Analytics

JSW Steel's Tumble: Untangling the Bhushan Power & Steel Supreme Court Setback

​JSW Steel's resolution plan for Bhushan Power & Steel rejected by Supreme Court, leading to financial setbacks and raising concerns over IBC...

Nimish Maheshwari

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Continuum Green, JSW Steel

Lucror Analytics

Steel Authority of India: Weak on Expansion

​Despite its vast resources, SAIL's operational inefficiencies have led to underperformance and a loss in market share. A deeper discount on its...

Rahul Jain

Supreme Court reinstates strict NCLT terms for JSW, risking BPSL liquidation; JSW likely to comply for long-term opportunity as BPSL integration...

JSW Steel's resolution plan for Bhushan Power & Steel rejected by Supreme Court, leading to financial setbacks and raising concerns over IBC...

Despite its vast resources, SAIL's operational inefficiencies have led to underperformance and a loss in market share. A deeper discount on its...