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 51796.79 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
The brokerage believes Indian steel names with financial leverage could outperform significantly as deleveraging could surpass even the loftiest of street estimates. Going ahead, we expect SAIL’s performance to improve further driven by realization uptick, volume growth and iron ore sales providing additional revenue stream. It maintains BUY recommendation on the stock with a LONG rating and value the stock at 4.5x EV/EBITDA and arrive at a price target of Rs. 181.
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.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
