SAIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | SAIL | Market Cap | 83,079 Cr. | Current Price | 201 ₹ | High / Low | 210 ₹ |
| Stock P/E | 22.5 | Book Value | 141 ₹ | Dividend Yield | 0.80 % | ROCE | 7.84 % |
| ROE | 6.48 % | Face Value | 10.0 ₹ | DMA 50 | 177 ₹ | DMA 200 | 152 ₹ |
| Chg in FII Hold | 0.47 % | Chg in DII Hold | 0.56 % | PAT Qtr | 1,912 Cr. | PAT Prev Qtr | 442 Cr. |
| RSI | 66.2 | MACD | 7.65 | Volume | 2,68,26,586 | Avg Vol 1Wk | 3,31,67,653 |
| Low price | 118 ₹ | High price | 210 ₹ | PEG Ratio | 0.75 | Debt to equity | 0.55 |
| 52w Index | 90.5 % | Qtr Profit Var | 59.3 % | EPS | 7.83 ₹ | Industry PE | 19.0 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT ₹1,912 Cr. vs ₹442 Cr. previous quarter, showing strong recovery and growth.
- Margins: ROE at 6.48% and ROCE at 7.84% indicate modest efficiency compared to peers.
- Debt: Debt-to-equity ratio of 0.55 reflects manageable leverage, healthy for a capital-intensive industry.
- Cash Flow: Supported by cyclical steel demand, but sensitive to commodity price fluctuations.
💹 Valuation Indicators
- P/E Ratio: 22.5 vs Industry PE of 19.0 — trades at a premium, suggesting high expectations.
- P/B Ratio: Price ₹201 vs Book Value ₹141 → ~1.42x, reasonable but not deeply undervalued.
- PEG Ratio: 0.75 indicates undervaluation relative to earnings growth.
- Intrinsic Value: Fairly valued with limited margin of safety at current levels.
🏭 Business Model & Advantage
SAIL is India’s largest state-owned steel producer with integrated operations from mining to finished steel. Its scale, government support, and domestic demand exposure provide resilience, though global competition and cyclical demand remain challenges.
📈 Technicals & Entry Zone
- RSI at 66.2 indicates near overbought levels.
- MACD positive (7.65) suggests short-term bullish momentum.
- Entry Zone: Attractive accumulation around ₹170–₹185 if correction occurs.
- Long-term Holding: Suitable for cyclical investors; potential upside tied to infrastructure and industrial growth.
✅ Positive
- Quarterly profit surged 59.3%.
- PEG ratio at 0.75 signals undervaluation relative to growth.
- Low debt-to-equity ratio (0.55).
⚠️ Limitation
- ROE at 6.48% is weak compared to peers.
- P/E ratio (22.5) higher than industry average.
- High sensitivity to steel price cycles.
📰 Company Negative News
- Profitability remains volatile due to global steel price fluctuations.
- Efficiency metrics (ROE, ROCE) lag behind industry leaders.
🌟 Company Positive News
- Quarterly PAT jumped significantly from ₹442 Cr. to ₹1,912 Cr.
- FII (+0.47%) and DII (+0.56%) holdings increased, showing investor confidence.
- Strong demand outlook from infrastructure and construction sectors.
🏭 Industry
Steel industry PE at 19.0 reflects cyclical valuation trends. Demand is driven by infrastructure, housing, and manufacturing growth. Global price volatility and raw material costs remain key risks.
🔎 Conclusion
SAIL shows improving profitability and manageable debt, but efficiency metrics remain modest. Current valuations are slightly stretched, with RSI signaling overbought conditions. Long-term investors may consider accumulating in the ₹170–₹185 range, aligning with cyclical demand growth in India’s infrastructure sector.
For a deeper perspective, you might explore a peer comparison or an industry outlook to complement this analysis.