Earnings Review: Brokerages bearish on JSW Steel post Q2, stock falls 4.5%

Meanwhile, CLSA maintained a 'sell' call on the stock but has raised the target price to Rs 245 per share from Rs 220 earlier. It expects the margin to peak in Q3 and then taper down.

"While JSW maintained its FY21 volume guidance of flat YoY, it indicated better realisations could be offset by higher domestic iron ore prices. As such, we expect its margin to peak in 3Q and then to taper down. As we expect domestic iron ore prices to remain resilient, we believe mills with iron ore from earlier allocations are better placed," the brokerage stated in a results review report.

However, talking to CNBC-TV18, Seshagiri Rao, Joint MD & Group CFO of the company said, “exports of iron ore in the first six months of this year are more than doubled. So that is a bit of a concern. The domestic industry is suffering from lack of iron ore as a lot of exports are happening from India.”

The stock fell as much as 4.5 percent to the day's low of Rs 306.30 per share on BSE.