Steel Authority of India (SAIL)
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Steel Authority of India (SAIL) is navigating a complex landscape characterized by strategic shifts towards high-value steel products and operational efficiencies. Management's focus on vertical integration and a significant capex program aims to enhance margins and reduce reliance on external raw materials. Despite short-term challenges from geopolitical tensions and rising input costs, SAIL's long-term outlook remains positive, supported by improving pricing power and a stable domestic demand environment. Vista's forecast anticipates moderate revenue growth, with margins expected to improve as operational efficiencies take hold. The company's fair valuation aligns with intrinsic value, and the expected upside of approximately 26.6% reflects confidence in SAIL's strategic initiatives. Over the next 12-24 months, key opportunities include the successful execution of brownfield expansions and the transition to 'Green Steel', while watchpoints include potential commodity price volatility and the resolution of mining lease uncertainties
Why We Like This Stock
- Management's strategic shift towards high-value steel products is expected to enhance margins and competitive positioning
- The ongoing capex program aims to improve operational efficiency and reduce reliance on external raw materials, supporting long-term growth
- Improving pricing power and stable domestic demand are anticipated to bolster revenue growth in the coming quarters
Things To Watch Out For
- Geopolitical tensions and rising input costs pose risks to margins and overall profitability
- Uncertainties surrounding iron ore mining leases could impact raw material security and operational stability
- Short-term demand softness due to seasonal factors may hinder revenue growth in the near term
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 105,378 | 102,479 | 110,811 | 110,894 | 116,841 |
| Profit Before Tax (Cr.) | 4,773 | 3,609 | 5,174 | 7,644 | 7,693 |
| PBT Margin | 4.5% | 3.5% | 4.7% | 6.9% | 6.6% |
| Net Profit (Cr.) | 3,986 | 2,690 | 3,567 | 5,280 | 5,314 |
| Earnings Per Share | 9.7 | 6.5 | 8.6 | 12.8 | 12.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Emkay Global | ▲ Buy | 190 | 27-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 185 | 30-Jul-2026 |
| Citigroup | ▼ Sell | 160 | 29-Jul-2026 |
| Elara Capital | ► Accumulate | 191 | 29-Jul-2026 |
| IDBI Capital | ► Hold | 182 | 29-Jul-2026 |
| Motilal Oswal | ▲ Buy | 195 | 29-Jul-2026 |
| UBS | ▼ Sell | 170 | 29-Jul-2026 |
| HDFC Securities | ► Add | 190 | 27-Jul-2026 |
| Morgan Stanley | ▼ Underweight | 160 | 27-Jul-2026 |
| Kotak Securities | ▼ Sell | 140 | 16-Jun-2026 |
| Mirae Asset | ▲ Buy | 220 | 16-Jun-2026 |
| HSBC | ► Hold | 200 | 11-Jun-2026 |
| Axis Securities | ► Hold | 200 | 18-May-2026 |
| ICICI Securities | ► Hold | 185 | 18-May-2026 |
| Investec | ▲ Buy | 270 | 18-May-2026 |
| JPMorgan | ► Hold | 172 | 18-May-2026 |
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.