Citi is of the view that better realisations, improving demand and rising volumes augur well for the company and raised the target to Rs 50 per share.
SAIL: On the back of an increase in steel prices and higher volumes, September-quarter results are likely to be better
The company said its total sales grew by about 50 percent on year to 15.83 lakh tonnes during July 2020. The company had registered sale of 10.59 LT steel during the same month last year, it said.
Emkay Global Financial is bullish on Steel Authority of India has recommended buy rating on the stock with a target price of Rs 43 in its research report dated July 14, 2020.
State-owned Steel Authority of India Ltd (SAIL) and private player Tata Steel both contribute about 20 per cent to India's total steel production.
As per official data, miner NMDC has made the highest contribution among steel PSUs at Rs 155 crore.
The company had a net profit of Rs 638.79 crore during the same quarter a year ago, the state-run firm said in a BSE filing.
Depending upon the Fe content, the iron ore can fetch a price of USD 40-45 a tonne to USD 62 a tonne, an expert said.
The eight iron-ore mines of SAIL located in the eastern region produced 43.67 million tonne of the key raw material in 2019.
Net Sales are expected to increase by 33.8 percent Y-o-Y (up 44 percent Q-o-Q) to Rs. 22,800 crore, according to Prabhudas Lilladher.
This was after the government's clearance for outright sale of state-owned SAIL's three special steel units -- Salem Steel Plant, Alloy Steels Plant and Visvesvaraya Iron and Steel Plant -- in 2017.
Steel producers have asked for a hike in import duties, to protect the domestic industry. Help may be at hand. Iron ore prices have been rising sharply, due to Vale’s regulatory issues. Eventually, steel prices will too, giving steel producers relief.
Net profit came in at 6.16 billion rupees ($86.25 million) for the three months ended December 31, compared with a profit of 431.6 million rupees in the previous year, the country's second-biggest steel company by assets said.
Vale's move comes after disaster struck after one of Vale's tailing dams in Brazil burst, killing at least 65 people with hundreds still missing.
The post of SAIL chairman fell vacant on June 30 with the retirement of P K Singh.
Prabhudas Lilladher recommended hold rating on Steel Authority of India with a target price of Rs 86 in its research report dated August 07, 2018.
As against a loss of Rs 685 crore in June quarter last year the company posted a profit of Rs 540 crore in Q1FY19.
Sudarshan Sukhani of s2analytics.com recommends buying Mahindra & Mahindra with stop loss at Rs 820 and target of Rs 850, a buy in Mindtree with stop loss at Rs 1020 and target of Rs 1065 and a buy also in Godrej Consumer Products with stop loss at Rs 1090 and target at Rs 1135.
"We advice traders to sell this stock in a range of Rs 77 to Rs 78 with a price target of Rs 63. A stop loss should be placed above Rs 81.50," says Aditya Agarwal,Head Technical Research at Way2Wealth Brokers.
Nifty has formed two consecutive 'Doji' candlestick pattern on daily scale indicating indecisiveness at current level. It is hovering around 100 SMA of 10,440 levels. A congestion area has developed and the Nifty is seen oscillating in a capped range of 10380-10630 levels," says Rajesh Agarwal of AUM Capital.
Rajat Bose of rajatkbose.com recommends buying Vedanta, Steel Authority of India and Nahar Poly Films.
Ashwani Gujral of ashwanigujral.com is of the view that one can sell Steel Authority of India and DCB Bank and can buy Zensar Technologies.