118.7000 1.82 (1.56%)
NSE Apr 02, 2025 15:31 PM
Volume: 21.1M
 

118.70
1.56%
Motilal Oswal
We see Steel Authority of India (SAIL) as the best play on higher steel prices as it: 1) is backward integrated with captive iron ore, 2) has a higher operating leverage due to high conversion cost, and 3) has a higher financial leverage. With limited capex, higher pricing should drive significant deleveraging and boost equity value. We estimate net debt to decline by INR232b (INR56/sh, 76% of CMP) over FY20-23E to INR305b. We also expect higher dividend payouts going forward (implying ~5% yield), supported by strong FCF of INR19/sh (25% yield). We are raising our FY22E/FY23E EBITDA estimate by 34%/37% and TP by 28% on expectation of higher realization and volumes. The...
Axis Direct upgraded Steel Authority of India (SAIL) Ltd. to Buy with a price target of 130.0 on 19 Mar, 2025.
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