Steel Authority of India Ltd.
Metals · NSE
52-week range
₹105 – ₹191
From 52w high
-3.0%
RSI (14)
67.2
vs SMA 50 / 200
↑ 50 · ↑ 200
Steel Authority of India (SAIL) is a PSU-integrated steel producer trading at ₹182.89, up 62.9% over the past 12 months and within 4% of its 52-week high. The stock sits above both its 50-DMA (₹165.37) and 200-DMA (₹143.75), while fundamentals show a 2.55% profit margin, a debt-to-equity of 57.76, and a consistency score of 0 across the tracked period. Forward PE of 15.73 implies the market is pricing in meaningful earnings expansion relative to the trailing PE of 27.09.
- ✓Price momentum is strong: up 62.9% over 12 months and 15.39% over 3 months, currently above both the 50-DMA and 200-DMA with RSI at 62.51 (neutral zone), and only 3.99% below the 52-week high.
- ✓Revenue has grown at 11.8% CAGR over 5 years and 5-year earnings growth is 167.6%, driven by recovery from a low-margin base; forward PE of 15.73 is below the trailing PE of 27.09, implying consensus expects earnings to continue expanding.
- ✓Quality score of 50 ranks SAIL first among its 5 valid sector peers (range 22–44), suggesting relative operational metrics are the strongest within this metals peer group.
- ✓SAIL secured a court-ordered stay on a steel antitrust investigation (April 2026), limiting immediate regulatory disruption; a new CMD (Ashok Kumar Panda) was appointed in May 2026, signalling leadership continuity at the PSU level.
- ✗Debt-to-equity of 57.76 with a rising debt trend and FCF positive in only 2 of the tracked years indicates the balance sheet is heavily leveraged and free cash generation is inconsistent — a combination that amplifies vulnerability to steel price cycles or demand slowdowns.
- ✗Profit margin of 2.55% leaves minimal buffer against input cost inflation, freight increases, or pricing pressure; the steel sector is cyclical and thin margins offer limited operating cushion in a downturn.
- ✗Fundamental consistency score is 0 and ROE above 15% was achieved in only 1 tracked year, indicating the business has not demonstrated sustained high-quality returns over the measurement period.
- ✗Mean analyst rating of 3.35 across 26 analysts (1–5 scale, lower = more constructive) sits near the mid-point of the scale, reflecting a divided analyst community — notably less constructive than the recent price rally might suggest.
- ·SAIL reached a 15-year price high in April–May 2026, gaining approximately 17% in April alone according to news reports, driven in part by broader steel sector optimism and domestic infrastructure demand narratives.
- ·A court stay was obtained against a Competition Commission of India antitrust probe into the steel sector (reported Reuters, April 2026); the stay blocks the investigation from proceeding for now but does not resolve the underlying matter.
- ·New CMD Ashok Kumar Panda was appointed (May 2026), replacing prior leadership; leadership transitions at PSUs can affect capital allocation priorities, capex pace, and dividend policy in subsequent quarters.
- ?Does the 167.6% five-year earnings growth reflect a structural improvement in SAIL operating efficiency, or is it primarily a recovery from pandemic-era lows that may not persist at the current margin level?
- ?Given a debt-to-equity of 57.76 and a rising debt trend, how sensitive is SAIL interest coverage to a 10–15% decline in steel realisations, and what does historical behaviour during past steel price corrections suggest?
- ?The antitrust investigation was stayed by a court, not dismissed — what is the scope of the original CCI inquiry, and what financial or operational remedies might be required if the stay is eventually lifted?
- ?With the forward PE implying significant earnings expansion, what assumptions about capacity utilisation, raw material costs, and domestic steel demand underpin analyst earnings forecasts for the next 2 years?
PE
27.1
Forward PE
15.7
ROE
—
Profit margin
+2.5%
D/E
57.76
Dividend yield
+0.9%
Quality score
50/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
2/5 yrs
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.Analysis generated 11 May 2026.