SAIL Shares Reach 15-Year High Amid Positive Market Outlook
SAIL hits 15-year high, up 17% so far in April; brokerages remain upbeat
Business Standard
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Steel Authority of India (SAIL) shares surged to ₹177.70, marking a 17% increase in April and hitting a 15-year high. Analysts remain optimistic about the company's growth, forecasting a rise in sales volumes and profitability due to increased steel demand and planned capacity expansions.
- 01SAIL shares hit ₹177.70, a 15-year high, with a 17% rise in April.
- 02The company plans to expand crude steel capacity from 20 MTPA to 35 MTPA by FY31.
- 03Brokerages project a 6% CAGR in sales volumes from FY25 to FY28.
- 04Foreign institutional investors increased their stake in SAIL for the fifth consecutive quarter.
- 05SAIL's debt has been reduced by approximately ₹7,000 crore, improving its financial health.
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The Steel Authority of India (SAIL) has seen its share price reach ₹177.70, a peak not seen in over 15 years, following a 17% increase in April. The surge is attributed to a positive business outlook, with analysts projecting a 6% compound annual growth rate (CAGR) in sales volumes, expecting them to rise from 17.9 million tonnes (MT) in FY25 to 21.5 MT by FY28. SAIL aims to expand its crude steel capacity from 20 MT to 35 MT by FY31, with significant investments planned, including a ₹36,000 crore outlay for enhancements at its IISCO Steel plant. Despite challenges like rising coking coal prices, the imposition of a 12% safeguard duty has led to a recovery in domestic steel prices, bolstering profitability. Analysts recommend a BUY rating on SAIL, with target prices ranging from ₹199 to ₹200 per share. Additionally, foreign institutional investors have increased their stakes, reflecting growing confidence in SAIL’s future performance.
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The rise in SAIL's share price and expansion plans may lead to increased job opportunities and economic growth in the steel sector, benefiting local communities and industries reliant on steel.
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