Ferrous Metals
Steel Authority of India (SAIL) is a prominent iron and steel manufacturing company based in New Delhi, India. With a significant market capitalization of Rs. 45,811.7 crores, SAIL operates on both domestic and international fronts.
The company's extensive product portfolio includes a variety of railway products such as:
In addition to railway products, SAIL produces various other iron and steel items, including:
SAIL serves a diverse clientele, including government organizations, public sector undertakings (PSUs), private companies, distributors, and resellers.
Founded in 1954, Steel Authority of India has shown impressive financial performance, reporting a trailing 12-month revenue of Rs. 102,012.4 crores. The company is also committed to returning value to its investors, featuring a dividend yield of 1.8% per year, with Rs. 2 declared as the dividend per share in the last 12 months. Over the past three years, SAIL has experienced a revenue growth of 5.5%.
Updated May 1, 2025
SAIL's stock has dropped 31.17% over the past year and has seen a 2.91% decline in the past month.
Despite the imposition of the safeguard duty, analysts warn of risks including global oversupply and muted domestic demand.
SAIL has underperformed compared to competitors like JSW Steel, signaling caution for investors.
The Indian government has imposed a 12% provisional safeguard duty on flat steel imports to protect domestic producers, including SAIL.
This safeguard duty could potentially reduce imports by up to 50% in FY26, allowing local producers to regain market share.
Tata Steel's CEO stated that the safeguard duty will support fair competition and the sustainability of the Indian steel sector.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Balance Sheet: Reasonably good balance sheet.
Size: Market Cap wise it is among the top 20% companies of india.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Technicals: Bullish SharesGuru indicator.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Momentum: Stock has a weak negative price momentum.
Growth: Poor revenue growth. Revenue grew at a disappointing -5.2% on a trailing 12-month basis.
Comprehensive comparison against sector averages
SAIL metrics compared to Ferrous
Category | SAIL | Ferrous |
---|---|---|
PE | 20.78 | 44.89 |
PS | 0.46 | 1.19 |
Growth | -5.2 % | -1.1 % |
SAIL vs Ferrous (2021 - 2025)
Understand Steel Authority of India ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
PRESIDENT OF INDIA | 65% |
Distribution across major stakeholders
Distribution across major institutional holders
Summary of Steel Authority of India's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook & Major Points:
SAIL's management expressed cautious optimism, emphasizing India's robust steel demand driven by infrastructure investments (Govt. capex of Rs.1.5 lakh crore), urban development, and power sector reforms. Key highlights:
Demand & Pricing: Domestic steel consumption grew 10.8% YoY (9M FY25), with Q4 traditionally the strongest quarter. Prices are expected to rebound after Q3 lows (blended NSR: Rs.49,700/ton), supported by reduced imports and potential safeguard duties.
Cost Efficiency: Focus on lowering coal costs (blend cost down to Rs.19,200/ton in Q3; further drop expected in Q4) and operational improvements (lower energy consumption, higher BF productivity).
Debt Reduction: Net debt reduced by Rs.1,700 crore in Q3 (to Rs.33,097 crore); target to align with FY24 levels (Rs.30,593 crore) by FY25-end.
Expansion: CAPEX of Rs.5,700 crore in FY25; Rs.55,000"“56,000 crore planned for 7.5 mt capacity expansion by 2031 (total 15 mt), funded via 1:1 debt-equity.
Decarbonization: Aiming to reduce CO2 emissions by 12% (to 2.19 tons/ton of crude steel) by 2031 via tech partnerships and renewable energy.
Product Mix: Reducing semi-finished sales (current: 8% vs. 14% production) via downstream projects (e.g., TMT mills) and third-party conversion agreements.
Risks: Global volatility (US tariffs, inflation) and import competition remain challenges. Domestic growth (6.4% GDP) and govt. infra push underpin positive medium-term outlook.
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Last updated: Feb 25
Question 1:
What should we make of the government's thinking of potential safeguard duties, import duties? How are you looking at it? The second question is on the cascading royalty. Is there a specific update? The third question is on Karnataka's proposed tax: can the centre intervene in the levy extent?
Answer Summary:
Safeguard duty decisions are pending with the finance ministry; SAIL has submitted inputs. Royalty updates are awaited for Jharkhand, Odisha, and Chhattisgarh mines. Karnataka's tax proposal has no direct impact on SAIL's operations.
Question 2:
How did flat and long prices move from Q2 to Q3? Highlight current spot prices.
Answer Summary:
Long product prices rose by ~Rs.1,300/ton (Q2: Rs.52,000; Q3: Rs.53,400), while flat product prices fell by ~Rs.2,000/ton (Q2: Rs.49,000; Q3: Rs.46,800). Blended prices declined marginally (Rs.50,500 to Rs.49,700). Positive price momentum is expected in Q4.
Question 3:
What drove the 16% YoY sales volume growth in Q3? Explain plant-wise EBIT improvements. What are coal cost trends?
Answer Summary:
Volume growth stemmed from infrastructure demand. Bhilai and Rourkela's EBIT improved due to operational efficiencies and input cost reductions. Coal blend cost dropped from Rs.20,600 to Rs.19,200/ton in Q3, with further declines expected in Q4.
Question 4:
What is the current NSR? Share CAPEX guidance for FY25, FY26, and expansion details. What is net debt outlook?
Answer Summary:
January's blended NSR was Rs.48,400/ton. FY25 CAPEX is Rs.5,700 crore (Rs.3,900 crore spent till December). FY26 CAPEX is Rs.7,500 crore. Net debt is projected to align with March 2024 levels (Rs.30,500 crore) by FY25-end.
Question 5:
What is current inventory value? How will debt be managed during expansion? Update on rail price revisions.
Answer Summary:
Inventory: 2.98 mt (value: ~Rs.12,000"“13,000 crore). Debt will stay controlled (debt-equity ratio ≤1.2:1 during expansion). Rail prices for FY23"“24 are under negotiation with authorities.
Question 6:
How are domestic coking coal prices indexed? What is the imported/domestic coal mix? CAPEX details?
Answer Summary:
Domestic coal prices are import-parity-linked but capped. SAIL's blend is 85% imported, 15% domestic. CAPEX: Rs.3,900 crore spent in 9M FY25; Rs.7,500 crore planned for FY26.
Question 7:
Timeline and funding for 15 mt expansion? Cost breakup?
Answer Summary:
15 mt expansion (Rs.1.1"“1.2 lakh crore) targets 2031 completion. Funding via 1:1 debt-equity. Stage-I approvals for IISCO, Bokaro, and Durgapur are underway.
Question 8:
Are long-term coking coal contracts in place? Why were Q3 other expenses lower?
Answer Summary:
Long-term coal contracts follow index-based pricing, ensuring cost benefits. Lower other expenses reflect broad operational improvements, not one-offs.
Question 9:
Plans to reduce semis sales? Updates on pellet plants for low-grade ore?
Answer Summary:
Semis reduction via internal conversion (e.g., new TMT mills) and third-party agreements. Pellet plant approvals for Goa ore are pending board/stage-wise clearances.
Question 10:
Current NSR for flats/longs? FY25 CAPEX target? FY25 sales volume and finished goods inventory?
Answer Summary:
January NSR: longs Rs.51,500/ton, flats Rs.45,800/ton. FY25 CAPEX: Rs.5,700 crore. FY25 sales target: 17.5 mt. Finished goods inventory: 1.79 mt (vs. 1.93 mt in September).
Valuation | |
---|---|
Market Cap | 46.88 kCr |
Price/Earnings (Trailing) | 20.87 |
Price/Sales (Trailing) | 0.46 |
EV/EBITDA | 4.36 |
Price/Free Cashflow | -25.63 |
MarketCap/EBT | 18.78 |
Fundamentals | |
---|---|
Revenue (TTM) | 1.02 LCr |
Rev. Growth (Yr) | 5.24% |
Rev. Growth (Qtr) | -0.48% |
Earnings (TTM) | 2.25 kCr |
Earnings Growth (Yr) | -66.45% |
Earnings Growth (Qtr) | -84.18% |
Profitability | |
---|---|
Operating Margin | 3.22% |
EBT Margin | 2.45% |
Return on Equity | 3.9% |
Return on Assets | 1.61% |
Free Cashflow Yield | -3.9% |
Analysis of Steel Authority of India's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Bhilai Steel Plant | 29.7% | 7.8 kCr |
Bokaro Steel Plant | 22.7% | 6 kCr |
Rourkela Steel Plant | 21.9% | 5.8 kCr |
Durgapur Steel Plant | 11.4% | 3 kCr |
IISCO Steel Plant | 9.8% | 2.6 kCr |
Others | 1.7% | 448.6 Cr |
Salem Steel Plant | 1.7% | 445.2 Cr |
Alloy Steel Plant | 1.2% | 312.1 Cr |
Total | 26.4 kCr |
Investor Care | |
---|---|
Dividend Yield | 1.78% |
Dividend/Share (TTM) | 2 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 5.44 |
Financial Health | |
---|---|
Current Ratio | 0.88 |
Debt/Equity | 0.72 |
Debt/Cashflow | 0.08 |
Detailed comparison of Steel Authority of India against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
JSWSTEEL | JSW SteelIron & Steel | 2.51 LCr | 1.71 LCr | -2.72% | +16.56% | 75.93 | 1.47 | -3.36% | -70.93% |
TATASTEEL | TATA STEELIron & Steel | 1.74 LCr | 2.22 LCr | -10.89% | -15.30% | 69.02 | 0.78 | -5.52% | +164.84% |
JINDALSTEL | Jindal Steel & PowerIron & Steel | 91.34 kCr | 50.2 kCr | -1.01% | -3.68% | 22.37 | 1.82 | -0.34% | -25.44% |
JSL | Jindal StainlessIron & Steel | 48 kCr | 38.82 kCr | -6.01% | -17.58% | 19.91 | 1.24 | -0.53% | -17.14% |
VISAKAIND | Visaka IndustriesCement & Cement Products | 536.06 Cr | 1.52 kCr | +7.00% | -43.68% | -32.61 | 0.35 | -4.43% | -505.89% |
Cessation • 01 May 2025 Change in Composition of SAIL Board |
Change in Management • 01 May 2025 Change in Composition of Board |
Cessation • 26 Apr 2025 Change in composition of SAIL Board |
Change in Management • 21 Apr 2025 Change in Composition of SAIL Board |
Cessation • 03 Apr 2025 Change in Composition of SAIL Board |
Earnings Call Transcript • 17 Feb 2025 Earnings Call Transcript |
Newspaper Publication • 12 Feb 2025 Extract of Newspaper Publication |