Maharatna PSU Declares 16% Dividend, Q4FY25 Results Robust; Buy Now Or Wait?

One of the largest steel makers in India, Steel Authority of India Limited (SAIL) is a Maharatna CPSE and a significant public sector steel production business. It was established on January 24, 1973, and currently runs three special steel plants in addition to five integrated steel mills. Following the PSU giant's announcement of Q4 and FY25 results as well as a dividend recommendation, SAIL's shares closed Thursday's trading session on the NSE 0.87% higher at Rs 130.08 per share, with a market capitalization of Rs 53.67KCr.

SAIL Dividend

"The Board of Directors have recommended the Final Dividend @ Rs.1.60 /- per equity share of Rs.10/- each for the Financial Year 2024-25 (16% of the paid up equity share capital of the Company). The said Final dividend for FY 2024-25 will be paid within 30 days from the date of approval by the Shareholders in the ensuing Annual General Meeting, the date of which will be intimated in due course," said SAIL in a stock exchange filing.

SAIL Q4 Results

The fourth quarter of the 2024-25 fiscal year saw an 11% increase in net profits for Steel Authority of India Ltd. (SAIL) from January to March, with net profits of Rs 1,251 crore, up from Rs 1,126 crore in the same quarter the previous year. In Q4FY25, the State-owned company's revenue generated Rs 29,316 crore, up 4.8% from Q4FY24's Rs 27,958 crore year-on-year (YoY). According to the PSU, on a stand-alone basis, its earnings before interest, tax, depreciation, and amortisation (EBITDA) were Rs 11,764 crore in FY25 compared to Rs 12,280 crore in FY24. In FY25, SAIL produced 19.17 million tons (MT) of crude steel, up from 19.24 MT in FY24. From 17.02 MT in FY24 to 17.89 MT in FY25, sales volumes improved. SAIL's total net profit for the whole year was Rs 2,371.82 crore, a 22.7% year-on-year decrease from Rs 3,066.67 crore in FY24. In the meanwhile, the company's revenue from operations was Rs 1,02,479.06 crore, which was somewhat less than the Rs 1,05,378.33 crore it had in FY24.

SAIL Share Price Target

"SAIL is currently trading near its recent resistance zone of ₹130. A clear breakout above this level with strong volume could open the path toward ₹136-₹140 in the short term. On the downside, immediate support lies at ₹124, followed by ₹120. The overall trend is gradually turning positive with higher lows on the chart, and momentum indicators are stabilizing. A buy-on-dips strategy around ₹125-₹126 with a stop-loss at ₹120 looks favorable for short-term traders," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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