Steel Authority of India (SAIL)
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →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
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 |
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.