SAIL Share Price Target 2022, 2023, 2024, 2025, 2030

Steel Authority of India (SAIL) is the largest steel-making company in India and a Maharatna company. This PSU company attracts investors due to its valuation and high dividend yield.

Investment in this script is a good choice or not we will find out in this article. Also, we will cover a detailed analysis of the company along with SAIL Share Price Target 2022, 2023, 2024, 2025 and 2030.

SAIL Share Price Target 2022, 2023, 2024, 2025 and 2030

SAIL Share Price Target

Steel Authority of India Limited is a government-owned company under the ownership of the Ministry of Steel. The company is also among the seven Maharatnas of the country’s Central Public Sector Enterprises.

The company was founded on 19 January 1954. The headquarter of the company is located in New Delhi, India. As per the latest data number of employees working in the company is 61,989.

Smt. Soma Mondal is the Chairman of the Steel Authority of India Limited.

Business Model of SAIL

Steel Authority of India Limited (SAIL) is a steel producer company. The company manufactures and sells a broad range of steel products.

The company produces iron and steel at 5 integrated plants and three special steel plants. These plants are located in the eastern and central regions of India and close to domestic sources of raw materials.

SAIL is a fully integrated iron and steel maker. The company is producing both basic and special steel for domestic construction, engineering power, railway automotive and defense industries. Also, the company produces steel for sale in the foreign market.

Products of the company:

  • Semis (Blooms, Billets, Slabs)
  • Structurals (Beams, Channels, Angles, Crane Rails, Z-type sheet-piling section)
  • Bars, Rods and Rebars (wire rods)
  • Hot rolled Products (coils & sheets)
  • Galvanised Products (Plain/Corrugated sheets & coils)
  • Plates
  • Pipe, Electrical steel & tin plates
  • Railway Products
  • Pig iron
  • Alloy, Stainless and other special steel
  • Parallel flange beams and structural.

Steel Plants:

  1. Bhilai,
  2. Rourkela,
  3. Durgapur,
  4. Bokaro and
  5. Burnpur (Asansol).

Special steel plants:

  1. Salem,
  2. Durgapur and
  3. Bhadravathi.

SAIL Share Price Target 2022

Steel Authority of India Ltd. is working in the steel & iron product sector. The market cap of the company is stood at approx ₹30,000 cr.

The current stock price of the company is in the range of ₹70-₹78. Sector P/E is 11.36 and SAIL P/E is just 2.41, which shows that the company is comparatively undervalued.

In the last three years, the share has given a CAGR return of 12.40%, which is good considering a PSU Stock,

SAIL Share Price Target 2022
First Target ₹80
Second Target ₹84

Related:

SAIL Share Price Target 2023

The company’s raw material prices have shown a volatile trend. If it continues then it will impact the margin and profit of the company.

SAIL also suffering a debt of ₹ 37,676.58 Cr. But still, the debt to equity ratio is 0.87 which is under control.

The company has too many lands in the country. It will give chance to the company that it can increase its capacity.

SAIL Share Price Target 2023
First Target ₹96
Second Target ₹105

SAIL Share Price Target 2024

The company needs to utilize its resources properly. SAIL has already started to work out and increase its mine’s quality. As an effect of this, the company was able to reduce its debt somewhat.

SAIL has a strong central marketing organization that is responsible for marketing the company’s steel products, including mild steel and alloy steel.

Furthermore, the company has a heavy dealer network across the country.

SAIL Share Price Target 2024
First Target ₹122
Second Target ₹134

SAIL Share Price Target 2025

SAIL is a government-backed company that gives an upper hand to its competitors. But in the last few years, the company is not able to increase its sales significance. So, management should try to increase its sales by increasing capacity.

While investing in this company you must keep in mind that the steel industry is sensitive to the shifting business cycles, including changes in the economy, interest rates and any seasonal changes in the demand and supply of the products.

SAIL Share Price Target 2025
First Target ₹143
Second Target ₹152

SAIL Share Price Target 2030

The company is one of the biggest integrated steel producers in the country.  However, SAIL relies on external sources of coal requirements, which exposes them to the risk of coal price fluctuations.

If you are investing in this company for the long term then you will definitely get good dividends. Also if the company does good in the future then good returns also will be on the card.

SAIL Share Price Target 2030
First Target ₹300
Second Target ₹325

Strengths of the company

Financial strengths:

  • High dividend yield of 12.00%.
  • FCFF per share 50.57 (Free cash flow per share)
  • Last five years sales growth is 12.09%.
  • Profit growth is 24.22% over the last five years.
  • Efficient Cash Conversion Cycle of 56.32 days.
  • The company has good cash flow management: CFO/PAT stands at 8.09.
  • 65% Promoter holding.

Key Strengths:

  • SAIL has geographically diversified operations and a rising emphasis on value-added products.
  • The company is one of the largest producers in India with a majority stake held by the Government of India.
  • A ‘Maharatna’ company.
  • The company has a strong market network.

Weaknesses of the company

Financial weaknesses:

  • A debt burden of ₹ 37,676.58 Cr.
  • The Current ratio and Quick ratio both are below standard.
  • Last five years ROE is just 2.29% and RoCE is 5.21%.
  • The company has contingent liabilities of 38,137.61 Cr.
  • Sale growth in the last three years is not satisfactory.

Other weaknesses:

  • The company’s raw material prices of iron ore and coking coal have shown a volatile trend over the years.
  • The steel industry is sensitive to the shifting business cycles. Also, the industry faces changes in the demand and supply conditions in the market.

Shareholding pattern of SAIL

Public 20.18%
Promoters 65%
FII 4.58%
DII 10.24%
Others 0%

Annual Reports of the company:

Competitors of SAIL

Hindalco, JSW Steel, Jindal Steel, Hindusthan Zinc, NMDC, and Tata Steel are some major competitors of the company.

Related:

SAIL Share Price Target 2022, 2023, 2024, 2025, 2030

SAIL Share Price Targets
First Target (2022) ₹80
Second Target ₹84
First Target (2023) ₹96
Second Target ₹105
First Target (2024) ₹122
Second Target ₹134
First Target (2025) ₹143
Second Target ₹152
First Target (2030) ₹300
Second Target ₹325

Final Thoughts

SAIL which is a “Mahratna” company has a good business on the basis of fundamentals. Also at the present time, the stock is available at a cheap price.

In the future, the company may do good as it is backed by the Government of India. If SAIL will be able to generate a 10% CAGR return then it may be a good company to invest in. As the company offers a high dividend also.

So, Friends if you like the article SAIL Share Price Target 2022, 2023, 2024, 2025, and 2030 then please share it with your friends on social media networks.

Disclaimer – In this article we have just evaluated the company. Also, we are not SEBI registered advisors. We have not provided any investment advice on this stock. This article is just for educational purposes only. Before doing any investment please research yourself or take the advice of your financial advisor.

FAQ :

  1. Who is the CEO of SAIL?

    Smt. Soma Mondal is the CEO of SAIL.

  2. Is SAIL a debt-free company?

    There is a debt burden of ₹ 37,676.58 Cr. in the company.

  3. Who is the owner of SAIL?

    The government of India with a stake of 65% is the owner of SAIL.

  4. Is it good to invest in SAIL?

    The company is working in the steel industry. In the last financial year, the company makes a huge profit which was more than 90% higher.

  5. Is SAIL a profitable company?

    Yes, the company is a profitable company.

Leave a Comment

Bazar Update