Today, the stock of SAIL has gained about 3 percent to reach Rs 107. Quarterly results for SAIL The quarterly results have been better on a year-on-year basis.
SAIL Latest Stock Price: After the quarterly results, the shares of Steel Authority of India (SAIL), a strong share of the metal sector, are seeing a rise. Today, the stock of SAIL has gained about 3 percent to reach Rs 107. Quarterly results for SAIL The quarterly results have been better on a year-on-year basis. The company’s Conso profit has increased by 4.1 percent to 1528.54 crores. Income has also increased from Rs 19,997.31 crore to Rs 25,398.37 crore on an annual basis. After the results, brokerage house Motilal Oswal has given a buy advice in this metal stock. The brokerage believes that the debt on the company is decreasing and the market share is increasing. The benefit of which will be available in the coming days.
Rakesh Jhunjhunwala’s portfolio includes
SAIL’s stock is included in the portfolio of veteran investor Rakesh Jhunjhunwala. He holds about 1.1 percent stake in the company. However, in the September quarter, he had a 1.8 percent stake in this company. But he sold 0.7 per cent stake in the December quarter. The company has a total of 45,000,000 shares in his portfolio, whose value is Rs 476 crore. This stock has proved to be better for investors in the last 1 year. During this period, the stock has given a return of about 60 percent.
company debt reduced
According to brokerage house Motilal Oswal, SAIL is continuously reducing its debt. Since the beginning of FY22, the debt of the company has come down by 16200 crores. At the same time, there has been an increase of 10200 crores in the market cap. The company will get the benefit of further reduction. The brokerage’s view on steel cycle is also positive. According to the brokerage, the prices of steel may increase further. At the same time, the outlook regarding supply in China is weak, which will benefit Indian companies. The brokerage house has given a target of Rs 142 in the stock. In terms of current price of Rs 104, it can give 36% return.
Prices may increase
The brokerage says that the steel industry may also increase the price in the coming days. Due to which the EBITDA growth of the companies will accelerate. The result for 3QFY22 has been better than expected. Adjusted EBITDA stood at 9877/t which is 19 per cent lower on year-on-year basis and 40 per cent lower on quarterly basis. The company’s Conso profit increased from 1468.20 crores to 1528.54 crores on a year-on-year basis. The profit of the company increased due to higher income. On the other hand, Kanso income has increased from Rs 19,997.31 crore to Rs 25,398.37 crore.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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