SAIL Share Price Target 2023, SAIL Share Price NSE, BSE: State-owned steel maker Steel Authority of India Ltd (NSE: SAIL) has started working on plans to expand its installed capacity by 15 million tonnes (MT) in the first phase. The company posted a consolidated net profit of Rs 1,305.59 crore for September quarter 2023-24, as higher sales volumes led to increased income. It had incurred Rs 329.36 crore net loss during July-September period a year ago. Total income rose to Rs 29,858.19 crore from Rs 26,642.02 crore in the year- ago quarter.
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SAIL Share Price Target 2023
Domestic brokerage ICICI Securities maintained ‘ADD’ rating on the stock of the steel giant with an upside potential of 8 per cent. It revised the target price to Rs 95 from the earlier Rs 100 in its latest report.
The report added that SAIL has delivered the highest volume growth among peers in Q3FY24. “We expect this to result in operating leverage benefits. Besides, the coking coal procurement structure of the company is likely to ensure that it is better insulated from the adverse impact of higher international coking coal price in Q3FY24. Taking cognizance of Q2FY24’s performance, we trim our FY24/FY25 EBITDA by 5% each, resulting in a revised TP of INR 95 (earlier INR 100) based on 6x FY25E EBITDA. Maintain ADD,” it said.
Analysts at ICICI Securities expect EBITDA/te to stay largely range-bound within Rs 5,000-5,500/te, as operating leverage benefits owing to volume growth are likely to partially offset the adverse price-cost spread.
The brokerage said that SAIL is going to benefit from (low priced) domestic coking coal price as BCCL ramps up production. Almost 11-12% of its current coking coal requirement is met by BCCL that has increased its offtake by 7.5% YoY (2.7mnte) through to YTD October 2023. As against international coal price of Rs 27,000/te expected in Q3FY24, coal sourced from BCCL is sourced at Rs 12,000/te. This is expected to give advantage to SAIL relative to peers in Q3FY24.
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SAIL Share Price History
In Friday’s trade, the stock closed in green to quote at Rs 89.30 apiece on the NSE, up by 1.48 per cent. As per BSE Analytics, in the last three year, the stock has delivered multibagger returns of 121.51 per cent, making investors richer with massive gains.
