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Steel Authority of India Limited
(SAIL)
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Rating:63Neutral
Price Target:
₹184.00
▲(13.90% Upside)
Action:Downgraded
Date:05/17/26
The score is primarily supported by improving FY2026 financial performance (better earnings, moderating leverage, and much stronger free cash flow) and favorable technical momentum. These positives are tempered by an expensive valuation (high P/E with a low dividend yield) and the company’s cyclical margin and cash-flow volatility.
Positive Factors
Stronger free cash flow
A large improvement in free cash flow in FY2026 signals better conversion of earnings into cash, enhancing the company’s ability to fund maintenance and growth capex, reduce leverage, and create a buffer against cyclical downturns. This materially strengthens medium-term financial flexibility despite past swings.
Negative Factors
Thin profitability and margin sensitivity
Low net margins mean earnings are highly exposed to commodity-price swings, input-cost inflation and cycle downturns. Persistent thin profitability limits internal funding for capex and dividends, constrains retained earnings buildup, and can hamper long-term return generation if cyclical upswings do not recur.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger free cash flow
A large improvement in free cash flow in FY2026 signals better conversion of earnings into cash, enhancing the company’s ability to fund maintenance and growth capex, reduce leverage, and create a buffer against cyclical downturns. This materially strengthens medium-term financial flexibility despite past swings.
Read all positive factors
Steel Authority of India Limited (SAIL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹700.12B
Dividend Yield0.95%
Average Volume (3M)1.55M
Price to Earnings (P/E)16.4
Beta (1Y)1.22
Revenue Growth6.45%
EPS Growth40.73%
CountryIN
Employees55,989
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)6.18
Shares Outstanding4,130,525,400
10 Day Avg. Volume2,713,368
30 Day Avg. Volume1,550,817
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)1.04
Price to Sales (P/S)0.56
P/FCF Ratio6.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹202.00Price Target Upside25.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)15.94
Revenue Forecast (FY)₹1.25T
Steel Authority of India Limited Business Overview & Revenue Model
Company Description
Steel Authority of India Limited (SAIL) is a prominent global manufacturer and supplier of a diverse range of iron and steel products, serving both domestic and international markets. Its extensive portfolio encompasses various structural steels, ...
How the Company Makes Money
SAIL primarily makes money by producing steel (and related by-products) and selling it to industrial customers, the public sector, and through domestic and export channels. Its core revenue stream is the sale of finished steel products—typically c...
Steel Authority of India Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
64
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06T | 1.11T | 1.02T | 1.05T | 1.04T | 1.03T |
| Gross Profit | 364.40B | 383.36B | 389.63B | 385.48B | 367.09B | 485.12B |
| EBITDA | 116.35B | 126.51B | 116.62B | 117.54B | 97.44B | 220.79B |
| Net Income | 25.56B | 33.73B | 23.72B | 30.67B | 21.77B | 122.43B |
Balance Sheet | ||||||
| Total Assets | 1.34T | 1.36T | 1.36T | 1.41T | 1.30T | 1.20T |
| Cash, Cash Equivalents and Short-Term Investments | 9.62B | 21.88B | 3.47B | 6.73B | 1.59B | 1.98B |
| Total Debt | 336.63B | 319.28B | 369.34B | 363.23B | 307.73B | 172.84B |
| Total Liabilities | 758.85B | 755.40B | 774.65B | 836.07B | 757.34B | 658.97B |
| Stockholders Equity | 582.78B | 603.56B | 589.06B | 571.01B | 547.47B | 542.12B |
Cash Flow | ||||||
| Free Cash Flow | 40.53B | 90.53B | 14.78B | -18.00B | -92.12B | 273.21B |
| Operating Cash Flow | 79.76B | 178.11B | 99.14B | 29.11B | -52.90B | 309.87B |
| Investing Cash Flow | -34.31B | -81.25B | -52.69B | -42.61B | -33.71B | -39.76B |
| Financing Cash Flow | -45.90B | -99.49B | -44.24B | 13.62B | 85.87B | -273.98B |
Steel Authority of India Limited Technical Analysis
Negative
161.55
Price Trends
171.71
Negative
175.49
Negative
160.26
Positive
Market Momentum
0.48
Negative
47.87
Neutral
34.89
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 161.55 is below the 20-day moving average (MA) of 168.89, below the 50-day MA of 171.71, and above the 200-day MA of 160.26, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 34.89 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹3.10T | 12.51 | ― | 0.57% | 12.22% | 411.48% | |
64 Neutral | ₹278.98B | 24.80 | ― | 0.77% | 22.76% | 21.47% | |
63 Neutral | ₹700.12B | 16.39 | ― | 0.99% | 6.45% | 40.73% | |
62 Neutral | ₹1.08T | 21.71 | ― | 0.07% | 233.77% | 200.66% | |
61 Neutral | ₹2.29T | 20.71 | ― | 2.11% | 10.51% | 143.13% | |
56 Neutral | ₹1.12T | 40.86 | ― | 0.19% | 16.45% | -8.77% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:SAIL
Steel Authority of India Limited
169.50
48.52
40.11%
IN:JINDALSTEL
Jindal Steel Limited
1,100.00
108.37
10.93%
IN:JSWSTEEL
JSW Steel Limited
1,267.00
192.77
17.94%
IN:LLOYDSME
Lloyds Metals & Energy Ltd.
1,918.15
539.77
39.16%
IN:SHYAMMETL
Shyam Metalics & Energy Ltd.
999.45
39.03
4.06%
IN:TATASTEEL
Tata Steel Limited
183.40
28.64
18.51%
Steel Authority of India Limited Corporate Events
SAIL Refutes Link Between Share Price Move and Repeat Media Report
Jul 30, 2026
Steel Authority of India Limited has clarified to the stock exchange that it previously signed a legally and commercially non-binding memorandum of understanding with Indonesia’s Krakatau Steel on 6 July 2026 to explore setting up a joint ve...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.