Steel Authority of India Limited (SAIL) AI Stock Analysis

• Market Cap: ₹642.71B
• Dividend Yield: 1.21%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 40.6
• Beta (1Y): 1.55
• Revenue Growth: 6.45%
• EPS Growth: 1.13%
• Country: IN
• Employees: 55,989
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.10
• Shares Outstanding: 4,130,525,400
• 10 Day Avg. Volume: 2,713,368
• 30 Day Avg. Volume: 1,550,817
• PEG Ratio: -0.90
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 32.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹157.67
• Price Target Upside: 4.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 7.59
• Revenue Forecast (FY): ₹1.09T

• Rating: 73 Outperform
• Price Target: ₹185.00 ▲(22.64% Upside)
• Action: Upgraded Date: 11/11/25
• Date: Action: Upgraded 11/11/25

The overall stock score of 73 reflects a stable financial performance with strong cash flow management and a sound balance sheet. Technical analysis indicates strong bullish momentum, although caution is advised due to overbought signals. The valuation suggests the stock may be overvalued, which could limit upside potential.

Positive Factors

Strong operating cash generation

SAIL’s operating cash flow materially exceeds reported net income (OCF/net income = 3.25). That persistent cash conversion provides durable funding for working capital, debt service, maintenance capex and optional investments, reducing refinancing risk and enhancing resilience through steel cycles.

Integrated production & diversified end markets

As an integrated steel producer with both flat and long product lines and exposure to infrastructure, railways and automotive, SAIL benefits from vertical integration and diversified demand. This structural positioning supports stable volumes, internal feedstock flexibility and lower reliance on any single end market.

Healthy production margins and EBITDA

Relatively strong gross margin (33.3%) and double-digit EBITDA margin indicate production efficiency and cost competitiveness at the plant level. These margins underpin sustained cash generation and provide a buffer to absorb moderate input-cost increases without immediate deterioration of operating cash flow.

Negative Factors

Low net profitability and weak ROE

Despite solid gross margins, SAIL’s net margin (2.3%) and ROE (4.0%) are low, signaling limited ability to convert operating performance into shareholder returns. Persistently thin bottom-line margins constrain retained earnings, dividend flexibility and capital allocation efficiency over medium term.

Structural exposure to volatile input costs

SAIL’s margins and cash flow are structurally exposed to commodity and energy price swings and logistic cost volatility. In a capital- and feedstock-intensive business, these input-cost dynamics can create sustained earnings volatility and complicate multi-quarter planning and margin preservation strategies.

Uncertain free cash flow growth vs. capex needs

While free cash flow improved, the company notes inconsistent FCF growth and the need to manage capital expenditures carefully. In a heavy-industry context, ongoing modernization and capacity upkeep require steady FCF; uncertainty raises risk to investment plans, dividends or reliance on incremental debt.

Steel Authority of India Limited Business Overview & Revenue Model

Company Description

Steel Authority of India Limited, a steel-making company, manufactures and sells iron and steel products in India and internationally. It offers rails, long rails, blooms, billets, slabs, channels, joists, angles, TMT rebars, wire rods, crane rails, plates, pig iron, and coal chemicals; narrow slabs; wheels and axles; and plate mill plates, HR plates, HR coils, CR sheets/coils, plain and corrugated galvanized sheets, ERW pipes, spiral weld pipes, and CRNO. The company also provides GP and GC sheets, galvanized steel, HRPO, bars and rebars, Z-bars, MS Arch, cold-rolled stainless steel, hot rolled carbon and stainless-steel products, micro-alloyed carbon steel, and alloy steel squares and rounds. In addition, it offers wear resistant plates, forgings, carne wheels, forged rolls/plates, stainless steel slabs, special steel, and rolled and forged alloy products; and high/medium/low carbon ferromanganese, and silico-manganese products. The company was founded in 1954 and is based in New Delhi, India.

How the Company Makes Money

SAIL generates revenue primarily through the production and sale of steel and steel-related products. Its key revenue streams include the sale of finished steel products such as hot and cold-rolled sheets, bars, and rods, as well as long products like rails and structural steel. The company also earns income from by-products generated during the steel manufacturing process, including slag, coal gas, and other materials. Additionally, SAIL has established partnerships with various industries and government projects, providing steel for infrastructure development, which further enhances its revenue. Factors contributing to its earnings include global steel demand, domestic market conditions, cost management strategies, and government policies that support the steel sector.

Steel Authority of India Limited Financial Statement Overview

Summary

Steel Authority of India Limited presents a stable financial position with moderate profitability and efficient cash flow management. Despite challenges in revenue and profitability, the company maintains a sound balance sheet with manageable leverage and strong cash flow generation capability.

Income Statement

The company's income statement shows moderate performance with a notable gross profit margin and consistent revenue. The gross profit margin was approximately 33.3% for the latest period, indicating efficiency in production despite the decline in total revenue from the previous year. The net profit margin stands at 2.3%, which suggests limited profitability after expenses. The EBIT margin is around 4.9%, showcasing moderate operating efficiency, while the EBITDA margin is 10.9%, illustrating decent cash flow generation from operations. Revenue growth has been fluctuating with a slight decline recently, which could be a concern if it continues.

Balance Sheet

The balance sheet reflects a balanced capital structure, with a debt-to-equity ratio of 0.63, indicating a moderate level of leverage. The return on equity (ROE) is 4.0%, which suggests limited efficiency in generating profits from shareholders' equity. The equity ratio stands at 43.2%, demonstrating a solid proportion of equity financing. While the company maintains a stable asset base, any increase in debt levels should be monitored to prevent potential risks associated with higher financial leverage.

Cash Flow

The cash flow statement reveals positive trends in operating cash flow, which exceeds net income significantly, leading to a robust operating cash flow to net income ratio of 3.25. The free cash flow has shown improvement, but the free cash flow growth rate is difficult to ascertain due to past fluctuations. The company's ability to generate cash flow from operations is strong, but managing capital expenditures effectively will be crucial for sustained free cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.04T	1.02T	1.05T	1.04T	1.03T	691.14B
Gross Profit	483.03B	341.56B	180.63B	454.03B	589.90B	399.93B
EBITDA	120.21B	112.09B	117.54B	92.48B	217.56B	140.98B
Net Income	30.35B	23.72B	30.67B	21.77B	122.43B	41.48B
Balance Sheet
Total Assets	0.00	1.36T	1.41T	1.30T	1.20T	1.18T
Cash, Cash Equivalents and Short-Term Investments	9.67B	3.47B	6.73B	1.59B	1.98B	5.84B
Total Debt	0.00	369.34B	363.23B	307.73B	172.84B	376.77B
Total Liabilities	-589.06B	774.65B	836.07B	757.34B	658.97B	724.12B
Stockholders Equity	589.06B	589.06B	571.01B	547.47B	542.12B	454.06B
Cash Flow
Free Cash Flow	0.00	14.78B	-18.00B	-92.12B	273.21B	198.75B
Operating Cash Flow	0.00	99.14B	29.11B	-52.90B	309.87B	234.30B
Investing Cash Flow	0.00	-52.69B	-42.61B	-33.71B	-39.76B	-32.95B
Financing Cash Flow	0.00	-44.24B	13.62B	85.87B	-273.98B	-198.08B

Steel Authority of India Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 150.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAIL, the sentiment is Neutral. The current price of 150.85 is below the 20-day moving average (MA) of 160.07, below the 50-day MA of 151.50, and above the 200-day MA of 135.53, indicating a neutral trend. The MACD of 2.93 indicates Positive momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 64.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SAIL.

Steel Authority of India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NMDC	75 Outperform	₹714.34B	10.41	―	4.05%	20.05%	15.58%
SAIL	73 Outperform	₹642.71B	40.58	―	1.21%	6.45%	1.13%
JSL	71 Outperform	₹645.44B	20.86	―	0.38%	9.04%	12.80%
SHYAMMETL	66 Neutral	₹234.16B	29.89	―	0.77%	18.36%	13.94%
WELCORP	66 Neutral	₹215.70B	11.86	―	0.61%	-1.19%	96.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JINDALSTEL	57 Neutral	₹1.26T	140.76	―	0.20%	-2.21%	-46.30%

Steel Authority of India Limited Corporate Events

SAIL Appoints Priya Ranjan as Director-in-Charge of Bokaro Steel Plant

Steel Authority of India Limited has announced a change in its board composition with the appointment of Shri Priya Ranjan, currently Executive Director (Works) at Bokaro Steel Plant, as Director-in-charge of Bokaro Steel Plant effective 24 December 2025, following his nomination by the Government of India and approval by SAIL’s board. A seasoned steel professional with over three decades at SAIL and prior experience in the non-ferrous sector, Ranjan has held key roles in operations, production planning, corporate strategy, and raw material security, and his elevation signals a continued emphasis on operational excellence, efficiency and strategic alignment at one of SAIL’s flagship plants, with the company affirming that he is not barred from holding directorship by any regulatory authority.