DINESH

Steel Authority of India (SAIL)

Industry: Iron & Steel
Latest CMP 170
Today's Change ▲ 0.49%
52-Week High / Low 206 | 117
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 269
Expected Upside 26.1%
Forecast Horizon 2 Years
Historical CAGR 7.2%
1,000 Invested 17-Aug-2006
Today's Value 4,050
Investment Period 20 Years

Stock Snapshot

Post Results Return
+2.2%
Neutral Market Reaction
1-Year Target Price
257
2-Year Target Price
269
52-Week High / Low
206 / 117
20-Day Return
+4.2%
Market Cap (Cr.)
70,016
Current PE
19.3
P/BV Ratio
1.2
Dividend Yield
1.2%
Industry PE
19.4

Price Performance

Basis of our Recommendation

Steel Authority of India (SAIL) is navigating a transitional phase marked by strategic maintenance and repair activities aimed at stabilizing future production. Management's focus on inventory liquidation and working capital management is expected to support deleveraging, despite elevated debt levels from high capital expenditures. The outlook for FY27 remains cautious due to seasonal monsoon impacts, but a recovery in long steel prices and a normalized cost structure are anticipated to bolster margins. SAIL's commitment to operational efficiency and capacity expansion, particularly through the commissioning of new projects, positions the company for long-term growth. However, risks from commodity price volatility and geopolitical tensions could pose challenges. Vista's financial outlook reflects moderating revenue growth but improving margins, with a fair valuation aligned with intrinsic value. The expected upside of 0.31% supports a 'Buy' recommendation, as SAIL is poised to benefit from domestic demand growth and improving pricing power in the iron and steel sector over the next 12-24 months

👍 Why We Like This Stock

  • Management's focus on inventory liquidation and working capital management is expected to enhance financial stability
  • Anticipated recovery in long steel prices and a normalized cost structure will support margin improvement
  • Strategic capacity expansions and operational efficiencies are likely to drive long-term growth

Things To Watch Out For

  • Seasonal monsoon impacts may hinder short-term volume recovery
  • Elevated debt levels from high capital expenditures pose financial risks
  • Commodity price volatility and geopolitical tensions could pressure margins

Key Parameters

Balance Sheet Strength
Stable Financial Structure
Market Share
Stable
Industry Outlook
Improving
Analyst View
Hold
Dividend History
Consistent
FII Holdings
Increasing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 105,378 102,479 110,811 111,394 121,123
Profit Before Tax (Cr.) 4,773 3,609 5,174 10,783 9,578
PBT Margin 4.5% 3.5% 466.9% 9.7% 7.9%
Net Profit (Cr.) 3,986 2,690 3,567 7,449 6,616
Earnings Per Share 9.7 6.5 8.6 18.0 16.0

Analyst Recommendations

Broker Recommendation Target Price Date
Axis Securities ► Hold 200 18-May-2026
Citigroup ▼ Sell 160 29-Jul-2026
Elara Capital ► Accumulate 191 29-Jul-2026
Emkay Global ▲ Buy 190 27-Jul-2026
HDFC Securities ► Add 190 27-Jul-2026
HSBC ► Hold 200 11-Jun-2026
ICICI Securities ► Hold 185 18-May-2026
IDBI Capital ► Hold 182 29-Jul-2026
Investec ▲ Buy 270 18-May-2026
Kotak Securities ▼ Sell 140 16-Jun-2026
Mirae Asset ▲ Buy 220 16-Jun-2026
Morgan Stanley ▼ Underweight 160 27-Jul-2026
Motilal Oswal ▲ Buy 195 29-Jul-2026
Prabhudas Liladhar ► Accumulate 185 30-Jul-2026
UBS ▼ Sell 170 29-Jul-2026
Consensus Recommendation ► Hold
Consensus Target 180
Coverage 15 Analysts
Analysts' Viewpoint
SAIL's focus on structural cost optimization and volume stability is expected to drive long-term growth, supported by the commissioning of the Tasra coal mine and Durgapur TMT bar mill. Analysts highlight the company's efforts to monetize iron ore fines and improve production stability through proactive maintenance. However, short-term challenges include monsoon-induced demand softness and reliance on imported coking coal, which exposes margins to global price fluctuations. The anticipated increase in capex from FY28 raises concerns about leverage and cash flow pressures.

Company Overview

Show Company Profile

Steel Authority of India Limited, a steel-making company, manufactures and sells iron and steel products in India and internationally. The company offers a range of railway products, which include rail, high YS/UTS rail, corrosion-resistant micro-alloyed rail, vanadium alloyed rail, end forged thick web asymmetric rail, high conductivity rail, crane rails, and crossing sleeper bars. It also provides pig iron, cold rolled products, pipes, semis, structurals, sail tmt bars, galvanized products, wirerods, pm plates, railway products, wheels and axles, hot rolled products, stainless steel products, electrical steels, and sail SeQR TMT bars. It serves government organizations, PSUS, private companies, distributors, and resellers. Steel Authority of India Limited was founded in 1954 and is based in New Delhi, India.