JSW Steel Ltd. shares are in focus on Monday, May 5, after brokerages turned bearish on the stock following the Supreme Court terming its six-year old Bhushan Power and Steel resolution plan as “illegal”.

Brokerage firm CLSA has an “underperform” call on the stock with a price target of ₹825 per share, implying a downside of nearly 15% from Friday’s close. The stock ended nearly 6% lower on Friday at ₹970 per share.

Nuvama has a “reduce” rating on the stock with a price target of ₹977 apiece, while Equirus has two scenario analysis, where it has projected a downside of up to 13% for the stock.

Supreme Court rejects resolution plan

In 2021, JSW Steel acquired a 49% stake in Bhushan Power and Steel (BPSL) via the insolvency and…