SAIL Share Price Target Forecast 2022, 2023, 2025, 2030

14 January, 2022

Kotak Securities recommends buying Steel Authority of India (SAIL) with a target price of Rs 112 per share.

Steel Authority of India (SAIL) Ltd. got a buy call from Kotak Securities with a target price of Rs 112. Steel Authority of India (SAIL) Ltd. is now trading at Rs 108.05. The time frame mentioned by the expert is Intra Day, during which the price of Steel Authority of India (SAIL) Ltd. might achieve the set objective.

Steel Authority of India (SAIL) Ltd., founded in 1973, is a Large Worth business in the Metals – Ferrous sector with a market cap of Rs 44237.93 crore.

For the year ending 31-Mar-2021, Steel Authority of India (SAIL) Ltd.’s primary Products/Revenue Segments are Iron & Steel, By Products, Other Operating Revenue, and Service Charges.

Financials

The firm reported a Consolidated Total Income of Rs 27007.02 Crore for the quarter ended September 30, 2021, up 30.12 percent from the previous quarter’s Total Income of Rs 20754.75 Crore and up 57.96 percent from the same quarter last year’s Total Income of Rs 17097.57 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 4261.91 crore.

Reasons for Investing

Following the creation of the Double Bottom, a reversal pattern appears, as well as increased volume activity.

FII Holdings/Promoter

As of September 30, 2021, promoters controlled 65.0 percent of the corporation, FIIs 5.38 percent, and DIIs 12.47 percent.

economictimes.com is the source for this information.


06 January, 2022

ICICI Direct recommends Steel Authority of India, with a target price of Rs 121.

Steel Authority of India (SAIL) got a buy signal from ICICI Direct with a target price of Rs 121. Steel Authority of India (SAIL) is now trading at Rs 112.05. Steel Authority of India (SAIL) Ltd. price can achieve stated target in 30 days, according to expert.

Steel Authority of India (SAIL) Ltd., founded in 1973, is a Large Valuation business in the Metals – Ferrous sector with a market cap of Rs 46385.80 crore.

For the year ending 31-Mar-2021, Steel Authority of India (SAIL) Ltd.’s primary Products/Revenue Segments are Iron & Steel, By Products, Other Operating Revenue, and Service Charges.

Financials

The firm reported a Consolidated Total Income of Rs 27007.02 Crore for the quarter ended September 30, 2021, up 30.12 percent from the previous quarter’s Total Income of Rs 20754.75 Crore and up 57.96 percent from the same quarter last year’s Total Income of Rs 17097.57 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 4261.91 crore.

Reasons for Investing

Going forward, the brokerage anticipates the stock to resume its upward trend in the following weeks, with a target of Rs 121, which is a 61.8 percent retracement of the previous pause (Rs 131-99)

FII Holdings/Promoter

As of September 30, 2021, promoters controlled 65.0 percent of the corporation, FIIs 5.38 percent, and DIIs 12.47 percent.

economictimes.com is the source for this information.


14 DECEMBER 2021

Motilal Oswal recommends buying SAIL with a target price of Rs 142.

In a research note dated December 13, 2021, Motilal Oswal is positive on SAIL, recommending a buy rating on the company with a target price of Rs 142.

SAIL research report by Motilal Oswal

Several variables, both seasonal and non-seasonal, hampered consumption this quarter, resulting in lower-than-expected demand. Poor demand has been attributed to a drop in worldwide steel prices, which has caused customers to postpone purchases. The majority of purchasers are standing still and ordering only when absolutely necessary; there is no replenishment demand. Dealers appear to have enough inventory and are de-stocking in the case of a price drop.

In the Pipes & Tubes category, secondary steel companies are fierce competitors. They began rolling thin sheets from larger billets and selling sheets to the P&T segment, which puts them in direct rivalry with the Hot Rolled Coil industry, particularly in the narrow-width segment. The market disruption has been exacerbated by a prolonged monsoon in the southern area and non-seasonal precipitation in the northern region.

The National Capital Region (NCR), a key building market, is facing a pollution restriction, which has become an annual occurrence around this time of year. The reappearance of COVID in the shape of the Omicron variation is bringing back memories of the Delta variant’s disruption.

Outlook

We keep our BUY recommendation, with a Target Price of INR142, based on 5x FY23E EV/EBITDA. The sustained drop in China steel prices is a big risk to our call.

Moneyconrol.com is the source for this information.


6 November 2021

Steel Authority of India’s recommendation is Buy, and the company’s second-quarter results exceeded expectations, according to Edelweiss.

SAIL’s Q2FY22 EBITDA of Rs 70.2 billion (up 6.9% q-o-q) exceeded expectations. Points to remember: I Sales volume increased by 28 percent year over year to 4.28 million tonnes. (ii) Due to rising coking coal costs, Ebitda/t fell 17 percent year over year. (iii) A net debt decrease of Rs 78 billion on a quarter-on-quarter basis. (iv) A second interim dividend of Rs 4 per share has been declared. Mgmt anticipates the firm to be debt-free by the end of Q1FY23e and to have a sales volume of 17 million tonnes in FY22e.

Despite near-term coking coal price pressure, we believe SAIL is in a good situation because of the large debt reduction it has already accomplished and its capacity to distribute cash to shareholders. As we roll over to FY23e results, keep ‘Buy’ with a TP of Rs 170 (previously Rs 180) at 5x Ebitda.

Debt reduction, dividend increase, and volume expansion —

everything comes together: SAIL’s performance in Q2FY22 exceeded expectations. Points to remember: I Volume increased by 28% q-o-q to 4.28 million tonnes, primarily to increased demand from the infrastructure and construction sectors, with exports accounting for 11% of total volume. (ii) Higher coking coal costs (up $50/t q-o-q) resulted in an Ebitda/t of Rs 16,395 for the quarter. (iii) In Q2FY22, gross debt was reduced by Rs 78 billion. (iv) A dividend of Rs 4 per share, bringing the total interim dividend for FY22 to Rs 5.8 per share. (v) The incremental impact of pay increases is expected to be Rs 16 billion. Despite increased coking coal prices in the short term, management expects to be debt-free by the end of the first quarter of FY23e. Furthermore, sales volume in FY22 is expected to be around 17 million tonnes.

High coking coal prices are expected to have a negative impact on near-term profitability:

The cost of coking coal climbed by $50/t year over year. Furthermore, the cost of coking coal increased to Rs 23,000/t in October-21, up from Rs 15,150/t in Q2FY22. Coking coal prices are expected to rise Rs 9,000/t in Q3FY22, compared to Q3FY21. While price rises of Rs 3,500/t for longs and Rs 1,700/t for flats previously taken in Oct-21 are likely to partially offset this, management does not expect the price hikes to be enough to avert margin erosion. However, management does not anticipate the $400/t coking coal price to last. The impact of high coking coal prices, in our opinion, will be ephemeral, but the benefit of debt reduction is expected to be long-term.

Outlook:

Taking advantage of lower debt – Despite near-term cost challenges, we believe SAIL has an advantage, since it has considerably decreased debt over the previous four quarters. As we transition to FY23e results, keep ‘BUY/SO’ with a revised TP of Rs 170 at 5x Ebitda.

Financial Express is the source for this information.


26 AUGUST 2021

In FY22, SAIL wants to reduce its net debt to Rs 15,000-20,000 crore.

If commodities prices and demand stay consistent, Steel Authority of India Ltd hopes to reduce its net debt to a range of Rs 15,000-20,000 crore in the current fiscal year, according to a top company official.

As of June 30, 2021, the Maharatna PSU’s net debt was about Rs 30,000 crore, down from Rs 35,350 crore at the end of the previous fiscal.

On the sidelines of the inauguration of MSTC’s new headquarters in New Town on the outskirts of the city, SAIL chairman Soma Mondal said, “We are aiming to reduce the debt drastically from around Rs 30,000 crore now to anywhere between Rs 15,000-20,000 crore, depending on steel prices and demand situation.”

She expected demand to increase in the coming months.
Flat product prices are constant, whereas long product prices are improving, according to Mondal.

During the fiscal year 2020-21, the domestic steel giant reduced its net debt by Rs 16,131 crore to Rs 35,350 crore.

During the current financial year, the corporation declared that it will invest Rs 8,000 crore on capital expenditure.

The steelmaker made a consolidated net profit of Rs 3,897 crore in the April-June quarter of the fiscal year 2021-22, compared to a loss of Rs 1,226 crore the previous quarter.

Moneyconrol.com is the source for this information.


11 AUGUST 2021

Motilal Oswal recommends buying SAIL with a target price of Rs 175 per share.

In its research report dated August 08, 2021, Motilal Oswal is positive on SAIL, recommending a buy rating with a target price of Rs 175 on the company.

SAIL research report by Motilal Oswal

SAIL continues to benefit from increased steel prices, reporting its highest-ever quarterly EBITDA of INR65.3 billion (+7% QoQ) despite volume declines of 24% QoQ. At INR19,728/t, EBITDA/t was the highest it had ever been. Net debt fell to INR311 billion (down from INR367 billion in March of this year). SAIL’s debt is expected to be reduced by INR44 billion to INR267 billion by the end of FY22, according to our estimates. Our FY22E/FY23E forecast remains unchanged.

Outlook

We value the company at INR175/share, or 5x FY23E EV/EBITDA, indicating a target P/B of 1.1x (vs. the historical average of 0.7x). The company is now trading at 3.3x FY22E EV/EBITDA at the CMP. We maintain our Buy recommendation.

Moneyconrol.com is the source for this information.


AUGUST 6, 2021

SAIL is back in the black, with a net profit of Rs 3,897 crore for the June quarter.

SAIL, the country’s largest steelmaker, reported a consolidated net profit of Rs 3,897.36 crore for the June 2021 quarter on Friday.

Steel Authority of India Ltd (SAIL) said in a BSE filing that the business recorded a net loss of Rs 1,226.47 crore in the previous quarter.

Its net revenue more than quadrupled to Rs 20,754.75 crore in April-June 2021, compared to Rs 9,346.21 crore the previous year.

Total costs were Rs 15,604.07 crore, up from Rs 11,325.10 crore the previous year.

The business stated in a statement that crude steel output was 3.77 million tonnes and sales were 3.32 million tonnes during the quarter.

“The result during the quarter gives testament to objective-driven strategy and tenacity by the SAIL collective notwithstanding the unfavourable impact of the dominating second wave of COVID-19,” stated Soma Mondal, the company’s chairman.

She went on to say that while demand for steel goods in the quarter did not have the same vigour as it had in March 2021, targeted initiatives in numerous areas of operations enabled the company achieve this strong outcome.

Demand is projected to continue solid in the second half of the year, with steady domestic consumption coming from industries such as infrastructure, manufacturing, packaging, and automotive, according to Mondal. She went on to say that it may be seen in the current consumption cycle as well as future industry patterns.

SAIL, which is part of the Ministry of Steel, is the country’s largest steel producer, with an annual capacity of over 21 million tonnes.

Moneyconrol.com is the source for this information.


29 JUNE 2021

ICICI Direct is buying Steel Authority of India with a target price of Rs 160.

In a research report dated June 29, 2021, ICICI Direct suggested a buy rating on Steel Authority of India with a target price of Rs 160.

Steel Authority of India research report by ICICI Direct

SAIL produced a set of data that were operationally consistent, with EBITDA/tonne almost matching our expectation. EBITDA/tonne for Q4FY21 was Rs 14145/tonne, which was roughly in line with our expectation of Rs 15000/tonne (EBITDA/tonne for Q3FY21 was Rs 12089/tonne). Sales volume for Q4FY21 was 4.35 million tonne (MT), up 16 percent year on year (our estimate: 4.27 MT).

The topline for standalone operations in Q4FY21 was Rs 23286 crore (up 44 percent YoY, 17 percent QoQ), which was higher than our forecast of Rs 22354 crore. Compared to our forecast of Rs 6405 crore, standalone EBITDA for the quarter was Rs 6153 crore (up 21 percent QoQ). EBITDA/tonne for Q4FY21 was Rs 14145/tonne, which was roughly in line with our expectation of Rs 15000/tonne (EBITDA/tonne for Q3FY21 was Rs 12089/tonne).

A one-time expenditure of Rs 166 crore was incurred during the quarter. The resulting standalone profit for the fourth quarter of FY21 was Rs 3444 crore (our estimate: Rs 3659 crore).

Outlook

We set a target price of Rs 160 based on a 5.5x FY23E EV/EBITDA valuation (earlier Rs 130). On the stock, we retain our BUY recommendation.

Moneyconrol.com is the source for this information.


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