Time period given by analyst is year when Steel Authority of India (SAIL) Ltd. price can reach defined target.
Steel Authority of India (SAIL) Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 53097.90 Crore) operating in Metals – Ferrous sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 19997.31 Crore, up 16.96 % from last quarter Total Income of Rs 17097.57 Crore and up 19.64 % from last year same quarter Total Income of Rs 16714.87 Crore. Company reported net profit after tax of Rs 1246.50 Crore in latest quarter.
Investment Rationale
The investment thesis continues to face the dual headwinds of i) higher employee costs and ii) possibility of higher capex. Coupled with peak spreads and most of the deleveraging expectations in the price, the investment thesis looks clouded. The pace of deleveraging, given capex programs will take time to ramp-up, limits downside risks to an extent, unlike past cycles. The brokerage downgrades to SELL with an unchanged target of Rs 99/share.
Promoter/FII Holdings
Promoters held 65 per cent stake in the company as of March 31, 2021, while FIIs held 4.4 per cent, DIIs 16.6 per cent and public and others 14 per cent.
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