ADVERTISEMENT

SAIL Q4 Review - Biggest Beneficiary Of Improved Pricing: Motilal Oswal

SAIL Q4 Review - Biggest Beneficiary Of Improved Pricing: Motilal Oswal

<div class="paragraphs"><p>A worker paints code numbers onto steel tubes at the finishing line of the steel tube mill at the Steel Authority of India Ltd. Rourkela Steel Plant (RSP) in Rourkela district, Odisha, India. (Photographer: Dhiraj Singh/Bloomberg)</p></div>
A worker paints code numbers onto steel tubes at the finishing line of the steel tube mill at the Steel Authority of India Ltd. Rourkela Steel Plant (RSP) in Rourkela district, Odisha, India. (Photographer: Dhiraj Singh/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 Q4 FY21 Ebitda grew 21% QoQ, despite a wage revision impact.

In the absence of significant capex, net debt declined further to Rs 366 billion (versus Rs 538 billion in March 2020).

With steel prices at a record high, the company is poised to post its best ever Ebitda/tonne of ~Rs 20,000 in Q1 FY22.

We upgrade our FY22E/FY23E Ebitda estimate by 71%/33% to factor in higher steel prices, and estimate a further Rs 102 billion (Rs 25/share) fall in net debt to Rs 265 billion (one time Ebitda) in FY22E.

Click on the attachment to read the full report:

Motilal Oswal SAIL Q4FY21 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.