Steel Authority of India Ltd
Steel Authority of India Ltd
Commodities F&OSteel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the countrys Central Public Sector Enterprises. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products.(Source : Company Web-Site)
SAIL trades at a P/E of 22.3x with weak ROE of 6% and massive contingent liabilities of Rs.44,708 Cr, but recent profit growth of 46% TTM and strong 1-year stock CAGR of 41% show cyclical momentum. With 59% of analysts rating it a Sell, the risk-reward is unfavorable for fresh entry at current levels.
Key Fundamentals
MidcapIron & SteelMetals & MiningTechnical Indicators
Key Insights
Strengths
2- Stock is trading at 1.17 times its book value
- Company has been maintaining a healthy dividend payout of 27.9%
Weaknesses
4- The company has delivered a poor sales growth of 9.90% over past five years.
- Company has a low return on equity of 5.80% over last 3 years.
- Contingent liabilities of Rs.44,708 Cr.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoSAIL trades at a P/E of 22.3x with weak ROE of 6% and massive contingent liabilities of Rs.44,708 Cr, but recent profit growth of 46% TTM and strong 1-year stock CAGR of 41% show cyclical momentum. With 59% of analysts rating it a Sell, the risk-reward is unfavorable for fresh entry at current levels.
- TTM profit growth of 46% indicates strong earnings recovery in the current cycle
- 1-year stock CAGR of 41% reflects significant price momentum and market re-rating
- P/B ratio of 1.25x is reasonable for a capital-intensive steel company with large asset base
- 10-year compounded sales growth of 11% shows long-term revenue expansion capability
- 3-year stock CAGR of 28% demonstrates sustained wealth creation over medium term
- Healthy dividend payout ratio of 27.9% provides income cushion for long-term holders
- Market cap of Rs.74,680 Cr provides large-cap stability and institutional participation
- 59.26% of analysts (16 out of 27) rate SAIL a Sell, signaling broad professional skepticism
- Contingent liabilities of Rs.44,708 Cr represent a massive overhang nearly 60% of market cap
- 3-year average ROE of just 6% is poor capital efficiency for a cyclical business
- 5-year compounded profit growth of -2% shows inability to sustain earnings across cycles
- Poor 5-year sales growth of 9.9% lags industry peers and inflation-adjusted growth
- Dividend yield of only 0.88% is unattractive relative to risk-free rates above 7%
- P/E of 22.3x is elevated for a commodity cyclical with volatile earnings and low ROE
- Potential interest cost capitalization may overstate reported profitability and asset values
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- SEBI fines for board lapses May 29
SAIL incurred fines from both BSE and NSE for non-compliance with SEBI board composition rules in FY26, indicating corporate governance gaps.
- Durgapur expansion to 3.7 MTPA Jun 06
SAIL is expanding Durgapur capacity from 2.2 MTPA to 3.2-3.7 MTPA by 2028 with new TMT mills and blast furnace, targeting EBITDA improvement from ₹6,000-7,000 to over ₹10,000 per tonne (43-67% increase). Debt-to-equity expected to remain manageable at 0.85-0.95x with ₹15,000 crore FY26-27 capex funded primarily through internal accruals.
- Stock hits multi-year high May 25
SAIL broke out of a four-year Ascending Triangle and six-month ₹134-157 trading range on strong volumes, with technical target of ₹222 in coming weeks. Stock in uptrend since April 2026 with bullish inverse Head & Shoulders pattern confirmed.
- ₹77 crore institutional block trade Jun 02
SAIL recorded a ₹77.19 crore block trade on NSE involving ~37.5 lakh shares at ₹206.01 per share, indicating institutional-level portfolio activity executed off-market to limit price impact.
TL;DR: SAIL is in a strong momentum phase with the stock at multi-year highs and a clear capacity expansion roadmap targeting 35 MTPA by 2030. The Durgapur expansion offers meaningful margin improvement through scale and product mix shift toward higher-margin long products. Key risks are execution-dependent — regulatory approvals could push commissioning to 2031, and minor governance lapses signal room for improvement. The trend is improving on both technical and fundamental fronts, supported by India's infrastructure capex cycle.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 29,131 | 24,359 | 29,712 | 23,349 | 27,959 | 23,998 | 24,675 | 24,490 | 29,316 | 25,922 | 26,704 | 27,371 | 30,813 |
| Expenses | 26,206 | 22,710 | 25,837 | 21,206 | 24,476 | 21,778 | 21,762 | 22,460 | 25,832 | 23,153 | 24,176 | 25,077 | 26,405 |
| Operating Profit | 2,924 | 1,649 | 3,875 | 2,142 | 3,483 | 2,220 | 2,913 | 2,030 | 3,484 | 2,769 | 2,528 | 2,294 | 4,409 |
| OPM % | 10% | 7% | 13% | 9% | 12% | 9% | 12% | 8% | 12% | 11% | 9% | 8% | 14% |
| Other Income | 519 | 527 | -174 | 355 | -43 | -28 | 322 | 393 | 362 | 235 | -34 | 248 | 202 |
| Interest | 517 | 613 | 605 | 614 | 642 | 691 | 758 | 680 | 664 | 595 | 484 | 547 | 532 |
| Depreciation | 1,365 | 1,275 | 1,327 | 1,321 | 1,356 | 1,402 | 1,304 | 1,421 | 1,524 | 1,441 | 1,453 | 1,516 | 1,577 |
| PBT | 1,562 | 288 | 1,770 | 563 | 1,441 | 98 | 1,173 | 323 | 1,657 | 968 | 556 | 480 | 2,502 |
| Tax % | 26% | 26% | 26% | 25% | 22% | 17% | 24% | 56% | 25% | 23% | 25% | 22% | 27% |
| Net Profit | 1,159 | 212 | 1,306 | 423 | 1,126 | 82 | 897 | 142 | 1,251 | 745 | 419 | 374 | 1,835 |
| EPS in Rs | 2.81 | 0.51 | 3.16 | 1.02 | 2.73 | 0.2 | 2.17 | 0.34 | 3.03 | 1.8 | 1.01 | 0.91 | 4.44 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 46,032 | 38,793 | 44,210 | 57,496 | 66,973 | 61,664 | 69,114 | 1,03,477 | 1,04,448 | 1,05,378 | 1,02,479 | 1,10,811 |
| Expenses | 41,217 | 41,628 | 44,094 | 52,788 | 57,167 | 51,400 | 56,337 | 82,114 | 96,410 | 94,229 | 91,789 | 98,811 |
| Operating Profit | 4,815 | -2,834 | 115 | 4,708 | 9,807 | 10,264 | 12,776 | 21,363 | 8,038 | 11,149 | 10,690 | 12,000 |
| OPM % | 10% | -7% | 0% | 8% | 15% | 17% | 18% | 21% | 8% | 11% | 10% | 11% |
| Other Income | 892 | 425 | 378 | 654 | 283 | 280 | 1,349 | 902 | 1,856 | 665 | 1,006 | 651 |
| Interest | 1,555 | 2,300 | 2,528 | 2,823 | 3,155 | 3,487 | 2,817 | 1,698 | 2,037 | 2,474 | 2,793 | 2,158 |
| Depreciation | 1,907 | 2,404 | 2,682 | 3,066 | 3,385 | 3,756 | 4,103 | 4,275 | 4,964 | 5,278 | 5,651 | 5,988 |
| PBT | 2,245 | -7,114 | -4,716 | -527 | 3,549 | 3,302 | 7,206 | 16,292 | 2,892 | 4,062 | 3,252 | 4,506 |
| Tax % | 14% | -41% | -42% | -47% | 34% | 36% | 42% | 25% | 25% | 24% | 27% | 25% |
| Net Profit | 1,939 | -4,176 | -2,756 | -281 | 2,349 | 2,121 | 4,148 | 12,243 | 2,177 | 3,067 | 2,372 | 3,373 |
| EPS in Rs | 4.93 | -10.11 | -6.67 | -0.68 | 5.69 | 5.13 | 10.04 | 29.64 | 5.27 | 7.42 | 5.74 | 8.17 |
| Div. Payout % | 41% | 0% | 0% | 0% | 9% | 0% | 28% | 30% | 28% | 27% | 28% | 29% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 4,131 | 4,131 | 4,131 | 4,131 | 4,131 | 4,131 | 4,131 | 4,131 | 4,131 | 4,131 | 4,131 | 4,131 |
| Reserves | 39,641 | 36,021 | 32,912 | 32,816 | 35,516 | 37,380 | 41,276 | 50,081 | 50,616 | 52,971 | 54,775 | 56,225 |
| Borrowings | 32,146 | 35,141 | 41,396 | 45,409 | 45,170 | 54,127 | 37,677 | 17,284 | 30,773 | 36,323 | 36,934 | 31,928 |
| Other Liabilities | 26,932 | 26,234 | 29,405 | 33,339 | 33,385 | 31,560 | 35,007 | 48,885 | 45,262 | 47,598 | 40,878 | 43,613 |
| Total Liabilities | 1,02,849 | 1,01,527 | 1,07,843 | 1,15,694 | 1,18,201 | 1,27,198 | 1,18,090 | 1,20,381 | 1,30,782 | 1,41,022 | 1,36,718 | 1,35,896 |
| Fixed Assets | 39,011 | 45,942 | 50,300 | 58,625 | 61,374 | 69,034 | 67,618 | 73,677 | 73,543 | 72,426 | 73,327 | 75,989 |
| CWIP | 29,328 | 24,927 | 23,275 | 18,395 | 16,014 | 8,753 | 8,881 | 4,710 | 4,891 | 6,141 | 7,206 | 10,552 |
| Investments | 61 | 2,280 | 2,475 | 2,629 | 2,975 | 3,240 | 3,442 | 3,757 | 4,185 | 4,589 | 4,976 | 4,339 |
| Other Assets | 34,450 | 28,377 | 31,792 | 36,044 | 37,838 | 46,170 | 38,149 | 38,237 | 48,163 | 57,867 | 51,209 | 45,016 |
| Total Assets | 1,02,849 | 1,01,527 | 1,07,843 | 1,15,694 | 1,18,201 | 1,27,198 | 1,18,090 | 1,20,381 | 1,30,782 | 1,41,022 | 1,36,718 | 1,35,896 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 2,579 | 4,043 | 2,160 | 6,164 | 7,215 | -618 | 23,430 | 30,987 | -5,290 | 2,911 | 9,914 | 19,039 |
| Investing | -6,292 | -4,805 | -5,467 | -6,480 | -3,694 | -4,261 | -3,295 | -3,976 | -3,371 | -4,261 | -5,268 | -7,899 |
| Financing | 3,775 | 743 | 3,302 | 269 | -3,549 | 5,003 | -19,808 | -27,398 | 8,587 | 1,362 | -4,424 | -11,403 |
| Net Cash Flow | 63 | -20 | -5 | -47 | -28 | 125 | 328 | -387 | -74 | 12 | 222 | -263 |
| Free Cash Flow | -5,038 | -2,450 | -3,267 | -441 | 3,335 | -4,999 | 20,019 | 27,557 | -8,812 | -1,297 | 4,537 | 10,942 |
| CFO/OP | 65 | -132 | 1,863 | 134 | 74 | -5 | 184 | 145 | -61 | 27 | 99 | 164 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 26 | 30 | 24 | 25 | 25 | 52 | 43 | 17 | 19 | 29 | 27 | 21 |
| Inventory Days | 370 | 308 | 274 | 199 | 243 | 370 | 207 | 170 | 180 | 222 | 211 | 156 |
| Days Payable | 77 | 82 | 90 | 87 | 89 | 97 | 107 | 143 | 92 | 103 | 75 | 72 |
| Cash Conversion Cycle | 319 | 255 | 209 | 137 | 179 | 325 | 144 | 44 | 107 | 148 | 163 | 105 |
| Working Capital Days | -68 | -137 | -172 | -87 | -51 | -24 | -78 | -39 | -41 | -20 | -18 | -28 |
| ROCE % | 5% | -6% | -2% | 3% | 9% | 8% | 11% | 24% | 6% | 8% | 7% | 8% |
Documents
Frequently Asked Questions about Steel Authority of India Ltd
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Company Information
Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the countrys Central Public Sector Enterprises. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products.(Source : Company Web-Site)