Dolat Capital is bearish on SAIL and has recommended sell rating on the stock with a target of Rs 30 in its November 06, 2015 research report.
Dolat Capital's report on SAIL
Maintain SELL on continuing disappointments on cost performance and volume growth uncertainty due to delayed projects: We believe that the stock is expensive as compared to peers like Tata Steel, JSW Steel that trade at 7-8x one-year forward EV/E. We therefore continue to maintain our SELL call on the stock while lowering our price target to `30 (earlier `35) valuing it at 16x FY17E EBIDTA on revised estimates. We also believe that the company’s continuing dismal all round performance on cost controls and implementation of various capacity expansion projects as compared to its peers will keep the stock under pressure for a long time. Besides, the delay in ongoing capex will put further pressure on its balance sheet as it will need to raise debt, says Dolat Capital research report.
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First Published on Nov 13, 2015 12:26 pm