Buy Steel Authority of India; target of Rs 160: ICICI Direct
ICICI Direct is bullish on Steel Authority of India recommended buy rating on the stock with a target price of Rs 160 in its research report dated June 29, 2021.
June 29, 2021 / 03:37 PM IST
ICICI Direct's research report on Steel Authority of India
SAIL reported an operationally steady set of numbers wherein EBITDA/tonne came in broadly in line with our estimate. For Q4FY21, EBITDA/tonne was at Rs 14145/tonne, broadly in line with our estimate of Rs 15000/tonne (Q3FY21 EBITDA/tonne was at Rs 12089/tonne). For Q4FY21, sales volume was at 4.35 million tonne (MT), up 16% YoY (our estimate: 4.27 MT). For Q4FY21, standalone operations reported topline of Rs 23286 crore (up 44% YoY, 17% QoQ), higher than our estimate of Rs 22354 crore. Standalone EBITDA for the quarter was at Rs 6153 crore (up 21% QoQ) vs. our estimate of Rs 6405 crore. For Q4FY21, EBITDA/tonne was at Rs 14145/tonne, broadly in line with our estimate of Rs 15000/tonne (Q3FY21 EBITDA/tonne was at Rs 12089/tonne). During the quarter there was an exceptional expense of Rs 166 crore. Ensuing standalone PAT for Q4FY21 was at Rs 3444 crore (our estimate: Rs 3659 crore).
We value the stock at 5.5x FY23E EV/EBITDA and arrive at a target price of Rs 160 (earlier Rs 130). We maintain our BUY recommendation on the stock.
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.