Steel Authority of India Limited (IN:SAIL)
:SAIL
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Steel Authority of India Limited
(SAIL)
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Rating:63Neutral
Price Target:
₹205.00
▲(35.90% 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 materially stronger free cash flow year improves the company's ability to fund maintenance and growth capex, service and reduce debt, and build liquidity buffers. Sustained FCF strength would materially increase financial flexibility across steel cycles.
Negative Factors
Thin net margins
Persistently low net margins mean earnings are highly sensitive to raw-material and price swings, limiting retained earnings for reinvestment. Over time thin margins constrain the company's ability to fund strategic upgrades or absorb prolonged industry downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Stronger free cash flow
A materially stronger free cash flow year improves the company's ability to fund maintenance and growth capex, service and reduce debt, and build liquidity buffers. Sustained FCF strength would materially increase financial flexibility across steel cycles.
Read all positive factors
Steel Authority of India Limited (SAIL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹822.80B
Dividend Yield1.21%
Average Volume (3M)1.55M
Price to Earnings (P/E)18.5
Beta (1Y)1.21
Revenue Growth8.13%
EPS Growth42.14%
CountryIN
Employees55,989
SectorBasic Materials
Sector Strength58
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
₹189.50Price Target Upside25.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)15.99
Revenue Forecast (FY)₹1.26T
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 rail...
How the Company Makes Money
SAIL primarily makes money by producing and selling steel and steel products. Its core revenue stream is the sale of finished steel (and, where applicable, semi-finished steel) manufactured at its steel plants and sold to industrial customers and ...
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 | 120.00B | 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 | 7.33B | 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
Positive
150.85
Price Trends
169.32
Positive
160.41
Positive
145.50
Positive
Market Momentum
7.64
Negative
65.92
Neutral
63.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAIL, the sentiment is Positive. The current price of 150.85 is below the 20-day moving average (MA) of 187.19, below the 50-day MA of 169.32, and above the 200-day MA of 145.50, indicating a bullish trend. The MACD of 7.64 indicates Negative momentum. The RSI at 65.92 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SAIL.
Steel Authority of India Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹3.14T | 12.28 | ― | 0.26% | 9.86% | 536.23% | |
65 Neutral | ₹899.16B | 18.32 | ― | 0.07% | 157.33% | 151.60% | |
64 Neutral | ₹257.23B | 20.24 | ― | 0.77% | 22.46% | 16.97% | |
64 Neutral | ₹2.58T | 22.17 | ― | 2.11% | 6.22% | ― | |
63 Neutral | ₹822.80B | 18.53 | ― | 1.21% | 8.13% | 42.14% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | ₹1.25T | 27.10 | ― | 0.20% | 6.95% | 18.97% |
* Basic Materials Sector Average
IN:SAIL
Steel Authority of India Limited
199.20
75.90
61.56%
IN:JINDALSTEL
Jindal Steel & Power Ltd.
1,222.80
257.12
26.63%
IN:JSWSTEEL
JSW Steel Limited
1,283.65
286.04
28.67%
IN:LLOYDSME
Lloyds Metals & Energy Ltd.
1,653.35
334.09
25.32%
IN:SHYAMMETL
Shyam Metalics & Energy Ltd.
921.55
18.34
2.03%
IN:TATASTEEL
Tata Steel Limited
207.05
49.13
31.11%
Steel Authority of India Limited Corporate Events
SAIL Elevates Ashok Kumar Panda to Chairman and Managing Director
May 9, 2026
Steel Authority of India Limited has appointed Dr. Ashok Kumar Panda as Chairman and Managing Director with effect from 9 May 2026, following his earlier role as Director (Finance). The company confirmed he is not debarred by any regulatory author...
SAIL Announces Cessation of Three Independent Directors After Tenure Ends
Apr 21, 2026
Steel Authority of India Limited has announced changes in its board composition with the cessation of three non-official independent directors upon completion of their one-year tenure on 20 April 2026. The departure of Dr. Gopal Singh Bhati, Dr. A...
SAIL Reshapes Board as Three Independent Directors Complete Tenure
Apr 21, 2026
Steel Authority of India Limited announced changes in its board composition with the cessation of three non-official independent directors. Dr. Gopal Singh Bhati, Dr. Anju Bajpai and Shri Manjeet Kumar Razdan completed their one-year tenures and c...
SAIL Announces Cessation of Three Independent Directors After Completion of Tenure
Apr 21, 2026
Steel Authority of India Limited has announced changes to its board composition following the completion of the one-year tenure of three non-official independent directors. Dr. Gopal Singh Bhati, Dr. Anju Bajpai, and Manjeet Kumar Razdan ceased to...
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.