Sail Stock Price: The shares of the government company Steel Authority of India Limited have a boom on the second consecutive day on 13 February. The stock opened at Rs 105.50 with a slight fall on BSE in the morning. After this, it jumped up to about 5 percent from the previous closed price to a high of Rs 110.90. On February 12, the stock rose by 5.6 percent. In this way, the share price in two business sessions has risen up to 10 percent.
Interestingly, the stock has a boom despite declining the profit of the sale in the October-December 2024 quarter. The reason behind this is that Brokerage Nuwama Institutional Equities have upgraded the ratings for the stock to ‘bye’ by ‘Reduce’. The target price has been increased from Rs 112 to Rs 123 per share. This is 16 percent higher than the closing price of the stock on February 12.
SAIL’s profit decreased by 66% in December quarter
During the quarter, the company’s consolidated net profit declined by 66 percent to Rs 141.89 crore on an annual basis. The profit was Rs 422.92 crore a year ago. Profit has decreased due to increased expenditure compared to income. The company’s total income increased to Rs 24,723.43 crore, which was Rs 23,492.33 crore in the December 2023 quarter. SAIL’s spending increased to Rs 24,560.47 crore in the December 2024 quarter, which was Rs 23,140.81 crore a year ago.
What does Nuwama expect next
Nuwama hopes that Ebitda/T for SAIL will be between Rs 5,400-6,600/T in FY 2025 and FY 2026. In the December quarter, the company’s EbitDA increased by about 3 percent to Rs 2,389 crore on the standalone basis. The sales volume increased to 44.3 lakh tonnes. Brokerage said, “We hope that the low prices of cooking coal will improve gross margin and in turn will promote 20% Ebitda CAGR in FY25–27E. The loan can remain at a high level between the 15mtpa expansion scheme. Sale will benefit the most by imposing safeguard duty on imports.
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Between the release of Working Capital, SAIL’s gross debt declined by Rs 1,860 crore to Rs 39,380 crore on a quarterly basis. Brokerage hopes that by the end of FY 2025 it will be reduced to Rs 35,900 crore.
Share strengthened 10 percent in a month
According to BSE, the market cap of the cell has increased to Rs 45,700 crore. The stock has strengthened 10 percent in the last one month. The face value of the stock is Rs 10. By the end of December 2024, the government had 65 percent stake in the company. The stock created a 52 -week high level of Rs 175.65 on 22 May 2024. At the same time, the 52 -week low level was seen on 129.20 rupees 12 February 2025. The upper circuit limit for the stock is Rs 116.35 and the lower circuit limit is Rs 95.25.