Time period given by analyst is one 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 54874.03 Crore) operating in Metals – Ferrous sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 23533.19 Crore, up 17.68 % from last quarter Total Income of Rs 19997.31 Crore and up 41.98 % from last year same quarter Total Income of Rs 16574.71 Crore. Company reported net profit after tax of Rs 3346.40 Crore in latest quarter.
Investment Rationale
SAIL has adopted a focused approach on improving its volume, improving its operational efficiencies, operating the facilities at optimum levels, deleveraging its balance-sheet, etc. In line with its focus on reducing the borrowings. SAIL has reduced its net debt by ~| 16200 crore in FY21. Going forward also, the brokerage expects SAIL’s net debt to further reduce by ~Rs 6800 crore, over the next couple of years. The brokerage models sales volume of 17 MT for FY22E and 19 MT for FY23E. It values the stock at 5.5x FY23E EV/EBITDA and arrives at a target price of Rs 160 (earlier Rs 130).
Promoter/FII Holdings
Promoters held 65 per cent stake in the company as of March 31, 2021, while FIIs held 4.3 per cent, DIIs 16.7 per cent and public and others 14 per cent.
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