Motilal Oswal's research report on SAIL
SAIL continues to reap the benefits of higher steel prices as it recorded its highest ever quarterly EBITDA of INR65.3b (+7% QoQ), despite volumes declining by 24% QoQ. EBITDA/t was the highest ever at INR19,728/t. Net debt declined further to INR311b (v/s INR367b in Mar'21). We expect SAIL to further reduce its debt by INR44b to INR267b at the end of FY22. We broadly maintain our FY22E/FY23E estimate.
Outlook
We value the stock at 5x FY23E EV/EBITDA at INR175/share, implying a target P/B of 1.1x (v/s its historical average of 0.7x). At the CMP, the stock is trading at 3.3x FY22E EV/EBITDA. We reiterate our Buy rating.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
