Buy SAIL With Stop Loss Of Rs 165
Technical analyst Jai Bala of cashthechaos. com has maintained 'buy' rating on Steel Authority of India Limited (SAIL) stock to attain an intraday target of Rs 172.
According to analyst, the investors can buy the stock with trailing stop loss of Rs 165.
The stock of the company, on April 27, closed at Rs 167.30 on the Bombay Stock Exchange (BSE).
Current EPS & P/E ratio stood at 13.22 and 12.49 respectively.
The share price has seen a 52-week high of Rs 234.10 and a low of Rs 152.50 on BSE.
India's biggest steel producer has decided to make an investment of Rs 2,875 crore towards the initial stage of modernization of its integrated steel facility in Durgapur, West Bengal.
This would enhance the company's production capacitance of finished steel to 1.36 million tonnes as against 0.75 million tones at present.
In addition, the company is eyeing to establish a 5 million tonne steel facility at Sindri fertiliser complex, a blocked division of Hindustan Fertiliser Corp, under the administrative control of the ministry of fertilizer.
Mr. CS Verma, SAIL chairman, stated that the company was making discussions with the fertiliser department on adopting the Sindri facility and the reaction from the fertiliser ministry was optimistic.
"We will have to make a valuation of the assets of the Sindri plant, after which we can decide about setting up a steel plant there," Mr. Verma said.
SAIL's much-awaited Rs 80 billion follow-on public offer will hit the capital market by May end.