Watch experts decode 'The rise of ESG investing' on October 29 at 4pm. Register Now!
Last Updated : Sep 17, 2020 02:54 PM IST | Source: Moneycontrol.com

Neutral SAIL; target of Rs 42: Motilal Oswal

Motilal Oswal recommended Neutral rating on SAIL with a target price of Rs 42 in its research report dated September 16, 2020.

Broker Research
  • bselive
  • nselive
Todays L/H

Motilal Oswal 's research report on SAIL

SAIL's 1QFY21 result was weak, as expected, with EBITDA loss of ~INR4.0b posted due to weak domestic demand and prices. The outlook, however, has improved, with both demand and pricing recovering in the quarter.

We expect better volumes and pricing to drive a 30% CAGR in EBITDA over FY20-22E. Net debt, however, is expected to remain elevated at INR467b in FY22, implying 5x net debt/EBITDA. The stock also trades at 6.3x EV/EBITDA, implying limited upside. Thus, we maintain Neutral, with TP of INR42.

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.

First Published on Sep 17, 2020 02:54 pm