Buy SAIL, target price Rs 81: Motilal Oswal

Motilal Oswal has buy call on Steel Authority of India (SAIL) with a target price of Rs 81. The current market price of Steel Authority of India (SAIL) is Rs 60.95.

Steel Authority of India (SAIL) Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 26352.75 Crore) operating in Metals - Ferrous sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 19835.71 Crore, up 17.19 % from last quarter Sales of Rs 16925.49 Crore and up 19.91 % from last year same quarter Sales of Rs 16542.48 Crore Company reported net profit after tax of Rs 1246.50 Crore in latest quarter.


Investment Rationale
The brokerage values the stock at 6.0x FY22E EV/EBITDA at INR81/sh, implying target P/B of 0.7x (in line with the historical average).

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of Dec 30, 2020, while FIIs held 4.2 per cent, DIIs 13 per cent and public and other 7.9 per cent.