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 ₹61,008 Cr INR. Additionally, and its trading price on July 29th, 2024, is Rs.148.
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.
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | |
| Promoters + | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% |
| FIIs + | 3.82% | 3.69% | 4.34% | 3.18% | 3.01% |
| DIIs + | 13.63% | 14.61% | 15.46% | 15.86% | 15.72% |
| Government + | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Public + | 17.56% | 16.70% | 15.20% | 15.96% | 16.27% |
| No. of Shareholders | 14,99,836 | 14,83,371 | 15,03,779 | 16,43,073 | 18,42,454 |
Over the period from June 2023 to June 2024, SAIL’s shareholding pattern exhibited stability and gradual shifts among different investor categories. The promoters consistently held a 65% stake, demonstrating unwavering confidence in the company. Foreign Institutional Investors (FIIs) displayed fluctuations in their shareholding, starting at 3.82% in June 2023, peaking at 4.34% in December 2023, and then declining to 3.01% by June 2024. This variability suggests changing levels of interest and confidence among international investors in SAIL’s performance and prospects.
Domestic Institutional Investors (DIIs), on the other hand, showed a steady increase in their shareholding, rising from 13.63% in June 2023 to 15.72% in June 2024, indicating growing domestic institutional confidence. The government maintained a consistent 0% stake throughout this period. Public shareholding initially declined from 17.56% in June 2023 to 15.20% in December 2023 but later increased to 16.27% by June 2024, reflecting changing retail investor sentiment. The number of shareholders grew significantly, from 14,99,836 in June 2023 to 18,42,454 in June 2024, highlighting increasing interest and participation from the investor community in SAIL.
Below are the trading platforms that you can use to purchase SAIL shares:
- Zerodha
- Upstox
- Groww
- AngelOne
- ICICIDirect
Recommended stock broking company
| When | Maximum Price | Minimum Price |
| August 2024 | 157.45 | 136.92 |
| September 2024 | 163.75 | 142.39 |
| October 2024 | 160.54 | 139.60 |
| November 2024 | 166.96 | 145.19 |
| December 2024 | 168.63 | 146.64 |
In 2024, the projected prices for SAIL shares are expected to show a range of fluctuations. In August 2024, the maximum price for SAIL shares is anticipated to reach ₹157.45, while the minimum price is projected to be ₹136.92. By December 2024, the maximum price for SAIL shares is expected to be ₹168.63, with a minimum price of ₹146.64, indicating a positive outlook for the company’s share value towards the end of the year.
| When | Maximum Price | Minimum Price |
| January 2025 | 170.32 | 131.01 |
| February 2025 | 172.04 | 132.34 |
| March 2025 | 175.65 | 135.12 |
| April 2025 | 173.91 | 133.78 |
| May 2025 | 168.85 | 129.88 |
| June 2025 | 176.45 | 135.73 |
| July 2025 | 172.99 | 133.07 |
| August 2025 | 178.34 | 137.18 |
| September 2025 | 180.48 | 138.83 |
| October 2025 | 185.17 | 142.44 |
| November 2025 | 189.80 | 146.00 |
| December 2025 | 198.34 | 152.57 |
As we step into 2025, the projected prices for SAIL shares are expected to exhibit significant fluctuations throughout the year. In January 2025, the maximum price for SAIL shares is anticipated to reach ₹170.32, while the minimum price is projected to be ₹131.01. By August 2025, the maximum price is expected to rise to ₹178.34, with a minimum of ₹137.18. As the year progresses towards December 2025, the maximum price for SAIL shares is projected to reach ₹198.34, with a minimum price of ₹152.57
| Year | Maximum Price | Minimum Price |
| 2026 | ₹287.56 | ₹152.00 |
| 2027 | ₹399.28 | ₹182.20 |
| 2028 | ₹438.50 | ₹241.95 |
| 2029 | ₹562.63 | ₹414.84 |
| 2030 | ₹659.98 | ₹461.98 |
The projected prices for SAIL shares over the next few years indicate significant growth and fluctuations. In 2026, the maximum price is expected to reach ₹287.56, while the minimum price is anticipated to be ₹152.00. In 2027, the maximum price is projected to rise further to ₹399.28, with a minimum price of ₹182.20. By 2028, SAIL shares are expected to reach a maximum of ₹438.50 and a minimum of ₹241.95. The upward trend continues in 2029, with the maximum price anticipated to be ₹562.63 and the minimum price ₹414.84. Finally, in 2030, the maximum price for SAIL shares is projected to reach ₹659.98, while the minimum price is expected to be ₹461.98, reflecting a Strong positive trajectory for the company’s share value over the years.
Financial Condition of Steel Authority of India (SAIL): Last 5 years
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
| Sales + | 61,664 | 69,114 | 103,477 | 104,448 | 105,378 |
| Expenses + | 51,400 | 56,337 | 82,114 | 96,410 | 94,229 |
| Operating Profit | 10,264 | 12,776 | 21,363 | 8,038 | 11,149 |
| OPM % | 17% | 18% | 21% | 8% | 11% |
| Other Income + | 280 | 1,349 | 902 | 1,856 | 665 |
| Interest | 3,487 | 2,817 | 1,698 | 2,037 | 2,474 |
| Depreciation | 3,756 | 4,103 | 4,275 | 4,964 | 5,278 |
| Profit before tax | 3,302 | 7,206 | 16,292 | 2,892 | 4,062 |
| Tax % | 36% | 42% | 25% | 25% | 24% |
| Net Profit + | 2,121 | 4,148 | 12,243 | 2,177 | 3,067 |
| EPS in Rs | 5.13 | 10.04 | 29.64 | 5.27 | 7.42 |
| Dividend Payout % | 0% | 28% | 30% | 28% | 13% |
Over the past five years, SAIL has exhibited a mix of growth and challenges in its financial performance. Sales revenue showed a consistent upward trend, increasing from ₹61,664 crore in March 2020 to ₹105,378 crore in March 2024. This growth in sales highlights SAIL’s expanding market presence and operational capacity. However, expenses also rose, climbing from ₹51,400 crore in March 2020 to ₹94,229 crore in March 2024, reflecting higher costs associated with increased production and market expansion.
Operating profit saw significant fluctuations, peaking at ₹21,363 crore in March 2022 with an OPM of 21%, but then dipping to ₹8,038 crore in March 2023 before recovering to ₹11,149 crore in March 2024, which translated to an OPM of 11%. These variations indicate periods of profitability impacted by changing market conditions and operational efficiencies.
Other income varied notably, with a peak of ₹1,856 crore in March 2023 and a significant drop to ₹665 crore in March 2024. Interest expenses generally declined from ₹3,487 crore in March 2020 to ₹2,474 crore in March 2024, indicating better debt management. Depreciation expenses consistently increased, reaching ₹5,278 crore in March 2024, reflecting ongoing investments in asset maintenance and expansion.
Profit before tax mirrored the volatility in operating profit, peaking at ₹16,292 crore in March 2022 but falling to ₹2,892 crore in March 2023 and slightly improving to ₹4,062 crore in March 2024. The net profit showed a similar trend, with a high of ₹12,243 crore in March 2022 but then declining to ₹2,177 crore in March 2023 before rising to ₹3,067 crore in March 2024. Earnings per share (EPS) followed this pattern, with a peak of ₹29.64 in March 2022 and a subsequent drop to ₹5.27 in March 2023, recovering to ₹7.42 in March 2024.
Dividend payout percentages fluctuated, peaking at 30% in March 2022 and then falling to 13% in March 2024. This reflects SAIL’s approach to balancing shareholder returns with reinvestment into the company.
Overall, while SAIL has demonstrated significant growth in sales and occasional peaks in profitability, the financials reflect the challenges of maintaining consistent profitability and managing costs in a dynamic market environment.
FAQS
As of July 29th, 2024, SAIL’s share price is Rs.148.
Based on market analysis, SAIL’s share price target for 2025 ranges between ₹129.88 to ₹198.34.
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 ₹198.34. 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.
ALSO READ:
- TITAN COMPANY LTD SHARE PRICE TARGET 2024 to 2030
- PUNJAB NATIONAL BANK SHARE PRICE TARGET 2024 to 2030
- ADANI ENTERPRISES Ltd SHARE PRICE TARGET 2024 to 2030
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?
Twitter
Linkedin
