Hold SAIL, says Fairwealth Securities

Shahina Mukadam of Fairwealth Securities advised holding SAIL.

Mukadam told CNBC-TV18, “The buyback of shares by Steel Authority of India (SAIL) though it is speculation it makes very good sense for the company to go in for a buyback because if you see the floating stock is very low, public holding is as low as maybe 3 percent, institutions with 11 percent.”
“SAIL is very cash rich. So if they were to even buyback 5 percent, a Rs 90 price or even maybe Rs 100 is not too tough to see before the disinvestment actually takes place. So, I would say that it makes good sense to average or just weight it out with his/her existing stock and make use of the higher levels to get out.”