Citi raises Steel Authority of India price target to INR115 on trends

Published 02/07/2025, 10:14
Citi raises Steel Authority of India price target to INR115 on trends

Investing.com - Citi has raised its price target on Steel Authority of India Ltd (NS:NSE:SAIL) to INR115.00 from INR95.00 while maintaining a Sell rating on the stock.

The price target adjustment follows recent trends and management commentary that prompted the analyst firm to revise its estimates upward for the state-owned steel producer.

Despite the higher price target, Citi believes that first-quarter EBITDA per ton has likely reached its peak and is already reflected in the current stock price.

The firm expects steel prices to face further downward pressure due to muted demand, falling exports, and new supply being added to the market.

At current spot EBITDA per ton levels, Citi notes that SAIL trades at an EV/EBITDA multiple of approximately 7x based on expanded volumes and fiscal year 2025 debt, with the firm anticipating further downside to steel prices and corrections in EBITDA per ton.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.