Prabhudas Lilladher Recommends Accumulate Call To Maharatna PSU Stock, TP Rs 95

Brokerage firm Prabhudas Lilladher has recommended accumulate call to large cap metals & ferrous sector stock Steel Authority of India Limited (SAIL) with target price of Rs 95 per share. Last trading price of Steel Authority of India Limited share on BSE is Rs 89.27 per share with intraday gain of 1.41%. SAIL shares offered return of 5.59% in last 2-weeks and over 9% in last 1-year. In last 2-years, SAIL shares fell 21%. Check details below:

SAIL Gets Accumulate Call: According to Tushar Chaudhari - Research Analyst, Prabhudas Lilladher Pvt Ltd, "We cut FY24/25E EBITDA estimates by 5%/2% on weaker 1H performance. We expect SAIL to remain a play on steel prices in medium term as a) its volume growth would depend upon successful execution of its planned capex in phases and significant capacity addition would only come post FY28E; b) near term volume growth would remain 8-10% but margins can get affected by higher coking coal costs; c) however hardening Iron ore prices will keep SAIL's strategic advantage intact vis a vis peers."

SAIL's 2Q EBITDA grew 29% QoQ to Rs 21.2bn (PLe Rs25bn) on weak realizations which declined sharp 7% (to Rs 58,259/t Vs PLe Rs 60k/t) on weak steel pricing scenario during monsoon. Long product prices had declined sharply however since September there was sharp reversal too. Sales volumes grew strong 24% QoQ to 4.8mt on weak 1Q. With 1mt inventory and strong domestic demand 2H volume growth is expected to remain in double digits, added Tushar Chaudhari.

SAIL Stock Performance & Return: Last trading price of SAIL stock on BSE is Rs 89.27 per share. Its 52-week high price is Rs 103.59 per share and 52-week low price is Rs 73.80 per share, respectively. The company has a market capitalisation of Rs 36,869.33 crore as on November 17, 2023. SAIL shares gained 8% in last 6-months and offered return of 121% in last 3-years.

About: Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the country's Central Public Sector Enterprises. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products, as per its official website.

Disclaimer: The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.