Steel Authority of India Limited (SAIL) AI Stock Analysis

• Market Cap: ₹623.92B
• Dividend Yield: 1.21%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.58
• Revenue Growth: 6.45%
• EPS Growth: 1.13%
• Country: IN
• Employees: 55,989
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.85
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹161.00 ▲(6.73% Upside)

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

Cash Flow Generation

SAIL's strong cash flow generation supports operational and capital expenditure needs, ensuring financial stability and flexibility.

Market Presence

SAIL's significant production capacity and sales volume highlight its strong market presence, crucial for maintaining competitive advantage.

Gross Profit Margin

A notable gross profit margin indicates efficient production processes, enhancing SAIL's ability to sustain profitability over time.

Negative Factors

Revenue Growth Decline

Fluctuating and declining revenue growth could impact SAIL's long-term profitability and market expansion if not addressed.

Limited Net Profit Margin

A limited net profit margin suggests challenges in converting revenue into profit, potentially affecting long-term financial health.

Debt Levels

Moderate leverage with a debt-to-equity ratio of 0.63 requires careful management to avoid financial strain and maintain balance sheet health.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 150.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 150.85 is above the 20-day moving average (MA) of 150.04, above the 50-day MA of 140.21, and above the 200-day MA of 130.91, indicating a bullish trend. The MACD of 3.68 indicates Negative momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 71.41 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NMDC	75 Outperform	₹713.46B	10.60	―	4.05%	20.05%	15.58%
SAIL	73 Outperform	₹623.92B	23.29	―	1.21%	6.45%	1.13%
JSL	71 Outperform	₹678.70B	22.69	―	0.38%	9.04%	12.80%
WELCORP	68 Neutral	₹192.29B	10.07	―	0.61%	-1.19%	96.91%
SHYAMMETL	66 Neutral	₹239.69B	24.99	―	0.77%	18.36%	13.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JINDALSTEL	57 Neutral	₹1.15T	59.18	―	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.