Steel Authority of India Ltd.
NSE: SAILSteel Authority of India Ltd.: A 30-second snapshot
Steel Authority of India (SAIL) trades at ₹199.08, up 70.48% over the past year and within 5.06% of its 52-week high, with the stock above both its 50-DMA (₹167.04) and 200-DMA (₹144.60). The company carries a debt-to-equity ratio of 57.76 with a rising debt trend, a 2.55% net profit margin, and a fundamental consistency score of 0. Forward PE compresses to 14.56 from a trailing 28.50, reflecting consensus expectations of a significant earnings step-up.
P/E
28.5
Forward P/E
14.6
ROE
—
Debt / Equity
57.76
Profit Margin
+2.5%
Div. Yield
+0.8%
5Y ROE > 15%
1/5
5Y FCF > 0
2/5
Quality
41/100
News
8 headlines · 5 positive · 1 negative
Internal SAIL notice shows plan to cut contract workforce by 40%. Read details - India Today
India Today
India's state-run SAIL wins court block on steel antitrust investigation - Reuters
Reuters
How The Story For Steel Authority Of India (NSEI:SAIL) Is Shifting With New Valuation And Leadership - Yahoo Finance
Yahoo Finance
Steel Authority of India: With SAIL shares at a 15-year high, what should investors do? - BusinessLine
BusinessLine
Stock Radar: SAIL hits fresh record high in April, breaks out from 1-year consolidation – time to buy? - The Economic Times
The Economic Times
Recent context
- ·An internal SAIL notice reported in May 2026 outlined plans to cut contract workforce by approximately 40%, a cost-reduction signal that market participants may interpret in the context of steel sector margin pressure.
- ·SAIL secured a court block on a steel antitrust investigation (Reuters, April 2026), but the stay is a procedural development — the investigation itself remains pending.
- ·SAIL shares have been reported near 15-year price highs (BusinessLine, May 2026), with price consolidation breakout coverage noted in financial media; the stock closed 5.06% below its 52-week high as of the run date.
Strengths
- +Revenue has grown at 11.8% CAGR over 5 years and earnings at 167.6% CAGR over 5 years, indicating cyclical operating leverage when steel demand conditions are favourable.
- +Price is above both the 50-DMA (₹167.04) and 200-DMA (₹144.60), with a 52-week drawdown of only 5.06%, reflecting sustained momentum over a multi-month period.
- +SAIL quality score of 50 ranks 1st within its 5-peer comparable group (peer range: 22–48), suggesting relative operational standing within this sector cohort.
- +The company obtained a court-ordered stay on the active steel antitrust investigation, temporarily limiting near-term legal disruption to operations.
Weaknesses
- −Debt-to-equity ratio of 57.76 is extremely elevated for a non-financial company, with a rising debt trend, FCF positive in only 2 of tracked years, and a fundamental consistency score of 0 — structural balance sheet fragility is a defining characteristic.
- −Net profit margin of 2.55% leaves minimal buffer for input cost increases, volume shortfalls, or interest expense growth given the high leverage position.
- −ROE data is unavailable and roeYearsAbove15 stands at 1 — sustained high-return capital cycles have not been demonstrated across the earnings history captured in available data.
- −Trailing PE of 28.50 is above peers HINDALCO (14.77) and JSWSTEEL (14.01); SAIL commands a premium multiple despite weaker profitability metrics relative to these competitors.
Open questions
- ?Does the forward PE compression from 28.50 to 14.56 assume steel price and volume conditions that are consistent with historical cyclical peaks, or does it reflect a structural shift in SAIL's cost structure?
- ?How has SAIL's interest coverage ratio trended as debt has risen, and at what steel price level does the company's thin 2.55% profit margin turn negative?
- ?What is the timeline and potential outcome of the active antitrust investigation, and what precedents exist for penalty severity in similar steel sector regulatory actions in India?
- ?Is the planned 40% reduction in contract workforce a one-time restructuring lever or evidence of a deeper demand or utilisation problem at one or more of SAIL's plants?
Peer comparison: Metals
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| SAIL | Steel Authority of India Ltd.You're viewing | 28.5 | — | 50 |
| Industry avg | across 5 peers | 23.8 | +20.5% | 38 |
| JSWSTEEL | JSW Steel Ltd. | 14.0 | +27.3% | 48 |
| TATASTEEL | Tata Steel Ltd. | 29.5 | — | 44 |
| HINDALCO | Hindalco Industries Ltd. | 14.8 | — | 38 |
| ADANIENT | Adani Enterprises Ltd. | 36.9 | +13.7% | 22 |
| DUMMYVEDL1 | Dummy Vedanta Ltd. 1 | — | — | — |
Technical state
Current price
₹199.08
SMA 50
₹167.04
SMA 200
₹144.60
RSI (14)
69.5 (neutral)
From 52w high
-5.1%
1Y return
+70.5%
3M return
+23.7%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity of 57.76 is extremely elevated for a non-financial company, combined with a rising debt trend, profit margin of only 2.55%, FCF positive in just 2 of tracked years, and a fundamental consistency score of 0 — the balance sheet carries substantial leverage risk.
- highROE is unavailable and roeYearsAbove15 stands at 1, indicating sustained high returns on equity have not been demonstrated. With a 2.55% net profit margin and rising debt, capital efficiency is structurally thin.
- mediumSAIL is subject to a steel antitrust investigation by a regulatory authority; while the company obtained a court-ordered stay, the underlying investigation remains active and its outcome is uncertain.
- mediumSAIL quality score of 50 ranks 1st of 5 comparable peers, but peer scores range from 22 to 48, indicating the peer cohort itself is low-quality. SAIL trailing PE of 28.50 is above peers HINDALCO (14.77) and JSWSTEEL (14.01), offering no valuation discount versus better-capitalised competitors.
- lowOne peer entry (DUMMYVEDL1) is a placeholder and was excluded; effective peer count is 5 of 6 listed. Peer priceChange1Y is null for all valid peers, so 1-year price ranking within the sector cannot be computed.
Cross-section contradictions
- Stock has gained 70.48% over 1 year and trades near a 52-week high (only 5.06% drawdown), while fundamental consistency score is 0, FCF is positive in only 2 tracked years, and debt trend is rising — price appreciation is not mirrored by balance-sheet improvement.
- Forward PE of 14.56 implies meaningful earnings expansion from a current profit margin of 2.55%; the extent to which operating leverage in steel can deliver that compression without margin erosion from input costs or capacity underutilisation is not resolved by available data.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days