ADVERTISEMENT

SAIL Q1 Review - Biggest Beneficiary Of Improved Pricing: Motilal Oswal

SAIL Q1 Review - Biggest Beneficiary Of Improved Pricing: Motilal Oswal

<div class="paragraphs"><p>A coil of rolled steel sits before distribution inside a hot-rolling steel plant. (Photographer: Henrik Kettunen/Bloomberg).</p></div>
A coil of rolled steel sits before distribution inside a hot-rolling steel plant. (Photographer: Henrik Kettunen/Bloomberg).

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Steel Authority of India Ltd. continues to reap the benefits of higher steel prices as it recorded its highest ever quarterly Ebitda of Rs 65.3 billion (up 7% QoQ), despite volumes declining by 24% QoQ.

Ebitda/tonne was the highest ever at Rs 19,728/tonne.

Net debt declined further to Rs 311 billion (versus Rs 367 billion in March 2021).

We expect SAIL to further reduce its debt by Rs 44 billion to Rs 267 billion at the end of FY22.

We broadly maintain our FY22E/FY23E estimate. We expect the dividend payout to be strong at Rs 10/share in FY22E (~7% yield), based on an expected 25% payout ratio.

Click on the attachment to read the full report:

Motilal Oswal SAIL Q1FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.