Steel Authority of India Limited (SAIL), a prominent Maharatna among India’s Central Public Sector Enterprises, stands as one of the largest steel-making companies in the country. SAIL operates five integrated plants and three special steel plants, strategically located in India’s eastern and central regions, enabling easy access to domestic sources of raw materials. This company offers a diverse range of steel products and holds the position of the fourth-largest steel company in India based on market capitalization, which amounts to 60,285 Cr INR. Additionally, and its trading price on April 4th, 2024, is Rs.146.
Throughout this article, we’ll look at SAIL in greater detail and examine its share price forecast from 2024 to 2030.
In terms of revenue and profits, the company has grown significantly over the last five years. But every investor is wondering if SAIL is a good stock to buy. Let’s look at the numbers to find out.
Steel Authority of India Limited (SAIL) Q3 FY24 Summary and Key Points:
- In Q3 FY24, the Steel Authority of India Ltd (SAIL) recorded a 22% decrease in consolidated net profit, falling to ₹422.9 crore compared to ₹542.18 crore in Q3 FY23.
- This decline in net profit was attributed to lower income, with the company’s revenue dropping to ₹23,348 crore from ₹25,042.1 crore in the same period last year.
- Despite the decrease in revenue, SAIL’s Q3FY24 EBITDA rose by 3.1% to ₹2,142.9 crore, and the margin increased by 90 basis points to 9.2%.
- SAIL Chairman Amarendu Prakash highlighted the company’s efforts to increase volumes, contributing to its financial performance despite challenges such as decreased price realization during the quarter.
- The company remains committed to sustainable performance, focusing on initiatives such as de-carbonisation, capacity utilization improvement, value addition, enhanced digitalization, and achieving cost competitiveness.
- SAIL declared an interim dividend of ₹1 per equity share for FY24, with February 20 set as the record date for payment of the interim dividend.
- Additionally, for the fiscal year ending March 2023, SAIL declared an equity dividend of 15.00% amounting to ₹1.5 per share, reflecting its consistent dividend track record over the last five years.
Below are the trading platforms that you can use to purchase SAIL shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
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| When | Maximum Price | Minimum Price |
| April 2024 | 151.80 | 132.00 |
| May 2024 | 149.56 | 130.05 |
| June 2024 | 154.94 | 134.73 |
| July 2024 | 153.39 | 133.38 |
| August 2024 | 159.53 | 138.72 |
| September 2024 | 165.91 | 144.27 |
| October 2024 | 162.65 | 141.44 |
| November 2024 | 169.16 | 147.10 |
| December 2024 | 170.85 | 148.57 |
In April 2024, SAIL’s maximum price is anticipated to hover around 170.85, while the minimum price may stabilize near 148.57. As the months progress, both the maximum and minimum prices are expected to witness gradual fluctuations, with May showcasing a maximum of approximately 169.16 and a minimum of around 147.10. By December 2024, SAIL’s share price is forecasted to experience sustained growth, potentially reaching a maximum of 170.85 and a minimum of 148.57, reflecting the dynamic nature of the market.
| When | Maximum Price | Minimum Price |
| January 2025 | 187.94 | 144.57 |
| February 2025 | 189.84 | 146.03 |
| March 2025 | 193.82 | 149.09 |
| April 2025 | 191.90 | 147.62 |
| May 2025 | 186.31 | 143.32 |
| June 2025 | 194.70 | 149.77 |
| July 2025 | 190.88 | 146.83 |
| August 2025 | 196.78 | 151.37 |
| September 2025 | 199.15 | 153.19 |
| October 2025 | 204.32 | 157.17 |
| November 2025 | 209.43 | 161.10 |
| December 2025 | 218.86 | 168.35 |
As we step into January 2025, SAIL’s shares are poised to initiate the year with a maximum price of approximately187.94 and a minimum price of around 144.57. Throughout the ensuing months, this trend is anticipated to persist, with both the maximum and minimum prices gradually ascending, reflecting a sustained trajectory of growth in the market. By the conclusion of December 2025, SAIL’s shares are forecasted to attain their zenith for the year, with a projected maximum of 218.86 and a minimum of 168.35, signaling continued optimism and investor confidence in the company’s performance.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹188.56 | ₹132.00 |
| 2027 | ₹199.28 | ₹112.20 |
| 2028 | ₹288.50 | ₹201.95 |
| 2029 | ₹592.63 | ₹414.84 |
| 2030 | ₹659.98 | ₹461.98 |
In 2026, SAIL’s shares are projected to reach a maximum price of ₹188.56 and a minimum price of ₹132.00, indicating a stable performance with moderate fluctuations. Moving into 2027, there is an anticipation for a potential uptrend, with the maximum price expected to rise to ₹199.28 and the minimum price to ₹112.20, reflecting increased investor confidence and market optimism. By 2028, SAIL’s shares are forecasted to experience significant growth, with the maximum price reaching ₹288.50 and the minimum price at ₹201.95, underscoring a period of robust performance and expansion in the company’s market value. Subsequently, in 2029, SAIL’s shares are expected to witness a substantial surge, with the maximum price projected to soar to ₹592.63 and the minimum price to ₹414.84, highlighting a period of remarkable growth and investor interest. Looking ahead to 2030, SAIL’s shares are forecasted to maintain their upward trajectory, with the maximum price expected to reach ₹659.98 and the minimum price to ₹461.98, showcasing sustained market confidence and a positive outlook for the company’s future performance.
Financial Condition of Steel Authority of India (SAIL): Last 5 years
| SAIL financials | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|
| Sales | 66,973 | 61,664 | 69,114 | 103,477 | 104,448 |
| Expenses | 57,167 | 51,400 | 56,337 | 82,114 | 96,408 |
| Operating Profit | 9,807 | 10,264 | 12,776 | 21,363 | 8,039 |
| OPM % | 15% | 17% | 18% | 21% | 8% |
| Other Income | 283 | 280 | 1,349 | 902 | 1,854 |
| Interest | 3,155 | 3,487 | 2,817 | 1,698 | 2,037 |
| Depreciation | 3,385 | 3,756 | 4,103 | 4,275 | 4,964 |
| Profit before tax | 3,549 | 3,302 | 7,206 | 16,292 | 2,892 |
| Tax % | 34% | 36% | 42% | 25% | 25% |
| Net Profit | 2,349 | 2,121 | 4,148 | 12,243 | 2,177 |
| EPS in Rs | 5.69 | 5.13 | 10.04 | 29.64 | 5.27 |
| Dividend Payout % | 9% | 0% | 28% | 30% | 28% |
FAQS
As of April 4th, 2024, SAIL’s share price is Rs. 146.
Based on market analysis, SAIL’s share price target for 2025 ranges between 143.32 to ₹218.86.
It is unlikely that SAIL’s share price will reach 500 INR by 2025. This would require an unprecedented increase in the stock’s value. According to our analysis, the best SAIL can reach by 2025 is ₹218.86. However, by 2029, SAIL may cross Rs.500.
The key factors affecting SAIL’s share price target include market demand for steel, the company’s financial performance, and government policies related to the steel industry.
How has SAIL performed in the last five years?
In the last five years, SAIL has shown steady growth in revenue, operating profit, and net profit. However, the company has also faced challenges such as high debt and low dividend payouts.
What is SAIL’s dividend payout ratio?
SAIL’s dividend payout ratio has varied in the last five years, ranging from 0% to 29.52%.
What is SAIL’s OPM (Operating Profit Margin)?
SAIL’s OPM has increased from 8.19% in March 2018 to 20.65% in March 2022. SAIL OPM% for 2023 is 8%.
SAIL’s EPS has decreased from 32.04 in March 2022 to 8.46 in May 2023.
What is SAIL’s price-to-earnings ratio?
SAIL’s price-to-earnings ratio has varied in the last five years, ranging from -53.1 to 27.1
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Conclusion: Is SAIL a good buy in 2024?
For those who wants to invest in a steel company, for them, SAIL could be a good option. Compared to Tata steel, which is the second largest STEEL company, SAIL is approximately just 1/3rd valuation of it.
Just saying the scope share price increase is higher with SAIL, if SAIL starts posting better numbers in next 5 to 10 years. This comparison is just to make it clear that there are opportunities, but I am no way saying SAIL will grow as big as Tata Steel or JSW steel. Financially, Steel Authority of India is posting good sales and profit numbers in general.
But be aware, with Steel Authority of India‘s profit and loss would depend a lot on raw steel prices. A good alternative to SAIL could be Jindal steel. Click here to check Jindal Steel’s share price target.
What did we learn?
- 1 Steel Authority of India Limited (SAIL) Q3 FY24 Summary and Key Points:
- 2 How to purchase SAIL shares?
- 3 SAIL Share Price Prediction: 2024 to 2025
- 4 SAIL Share Price Prediction 2026-2030
- 5 Financial Condition of Steel Authority of India (SAIL): Last 5 years
- 6 FAQS
- 6.1 What is SAIL’s current share price?
- 6.2 What is the expected share price target for SAIL in 2025?
- 6.3 Can SAIL’s share price reach 500 INR by 2025?
- 6.4 What are the key factors affecting SAIL’s share price target?
- 6.5 How has SAIL performed in the last five years?
- 6.6 What is SAIL’s dividend payout ratio?
- 6.7 What is SAIL’s OPM (Operating Profit Margin)?
- 6.8 What is SAIL’s EPS (Earnings Per Share)?
- 6.9 What is SAIL’s price-to-earnings ratio?
- 7 Conclusion: Is SAIL a good buy in 2024?
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