Steel Authority of India Limited (SAIL) AI Stock Analysis

• Market Cap: ₹495.04B
• Dividend Yield: 1.68%
• Average Volume (3M): 442.65K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.72
• Revenue Growth: -0.58%
• EPS Growth: 3.36%
• Country: IN
• Employees: 55,989
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Steel
• EPS (TTM): 1.70
• Shares Outstanding: 4,130,525,400
• 10 Day Avg. Volume: 342,994
• 30 Day Avg. Volume: 442,655
• 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: ₹120.00
• Price Target Upside: 0.13% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 61 Neutral
• Price Target: ₹127.00 ▲(5.97% Upside)

The overall stock score of 61 reflects a stable financial performance with strong cash flow management, but it is offset by bearish technical indicators and a moderate valuation. The company's ability to generate cash flow supports its operations, yet the stock's current downward trend and fair valuation suggest caution. Continued focus on improving revenue growth and profitability will be crucial for enhancing the stock's attractiveness.

Steel Authority of India Limited Business Overview & Revenue Model

Company Description

Steel Authority of India Limited (SAIL) is one of India's largest state-owned steel-making companies, headquartered in New Delhi, India. Established in 1954, SAIL operates across multiple sectors including mining, steel production, and power generation. The company is primarily engaged in the production of a wide range of steel products, including hot and cold rolled sheets and coils, galvanized sheets, electrical sheets, structurals, railway products, and plates. SAIL caters to diverse industries such as construction, engineering, power, railway, automotive, and defense, playing a significant role in India's infrastructure and industrial development.

How the Company Makes Money

SAIL makes money primarily through the production and sale of steel products. The company's revenue model is based on manufacturing a comprehensive array of steel goods, which are supplied to various industries including construction, railways, defense, and automotive. Key revenue streams include the sale of finished steel products like hot-rolled and cold-rolled coils, structurals, and other value-added products. SAIL owns and operates several integrated steel plants and special steel plants across India, ensuring a steady production capacity to meet market demand. Additionally, SAIL's mining operations provide a consistent supply of raw materials, such as iron ore and coal, which are crucial for steel production. This vertical integration helps in cost management and maintaining competitive pricing. The company's strategic partnerships and collaborations with other domestic and international firms also contribute to its earnings by expanding its market reach and technological capabilities.

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 recent revenue challenges, the company maintains a sound balance sheet with manageable leverage and strong cash flow generation capabilities.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01T	1.02T	1.05T	1.04T	1.03T	683.45B
Gross Profit	418.83B	341.56B	393.59B	447.04B	294.73B	150.94B
EBITDA	108.36B	112.09B	117.54B	92.48B	217.56B	140.98B
Net Income	22.46B	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	7.54B	9.67B	1.45B	1.59B	1.98B	5.84B
Total Debt	0.00	369.34B	363.23B	307.73B	172.84B	376.77B
Total Liabilities	-575.88B	774.65B	836.07B	757.34B	658.97B	724.12B
Stockholders Equity	575.88B	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	77.00B	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: Negative
• Last Price: 119.85
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 119.85 is below the 20-day moving average (MA) of 122.59, below the 50-day MA of 128.52, and above the 200-day MA of 118.52, indicating a neutral trend. The MACD of -2.19 indicates Positive momentum. The RSI at 37.51 is Neutral, neither overbought nor oversold. The STOCH value of 25.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	76 Outperform	₹614.20B	9.39		4.73%	18.30%	10.95%
JSL	75 Outperform	₹654.36B	25.44		0.38%	6.03%	-1.70%
SHYAMMETL	74 Outperform	₹263.17B	28.53		0.67%	18.34%	-20.59%
WELCORP	67 Neutral	₹230.67B	11.57		0.57%	-12.29%	68.04%
JINDALSTEL	63 Neutral	₹993.36B	33.26		0.21%	-5.12%	-47.40%
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%
SAIL	61 Neutral	₹495.04B	16.31		1.68%	-0.58%	3.36%

Steel Authority of India Limited Corporate Events

SAIL Reports Steady Q1 FY’26 Performance with Strong Sales and Profitability

Steel Authority of India Limited reported its financial results for Q1 FY’26, highlighting a turnover of Rs. 25,731 crore and a net profit of Rs. 654 crore. The company achieved a total sales volume of 4.550 million tonnes, with domestic sales comprising the majority. SAIL’s production figures included 5.128 million tonnes of hot metal and 4.854 million tonnes of crude steel. The financial metrics indicate a stable performance with an EBITDA margin of 11.20% and a debt-equity ratio of 0.64, suggesting a balanced financial position. This performance reflects SAIL’s strong market presence and operational efficiency, which are crucial for maintaining its competitive edge in the steel industry.