We recommend booking profits in JSW Holdings Ltd. The stock has been rallying for the past few weeks and moved up by 105% from our recommended price in less than 5 months. It is up more than 50% in just 3 days without much material change in fundamentals.
We recommended buying JSW Holdings at a price-to-book (PB) multiple of 0.3 in June 2024. SEBI had announced a special call auction session for holding companies. The final list which the exchange published didn’t include JSW Holdings for the special call auction session but the stock has still managed to move up.
The stock is currently trading at PB multiple of almost 0.5. The multiple is not stretched and the stock still has further potential for upside till 20,000 levels. However, we believe that 50% upside in 3 days warrants for a profit booking.
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