Public Sector Steel major Steel Authority of India Limited (SAIL) has signed a memorandum of understanding (MoU) with Bangalore-based Bharat Earth Movers Limited (BEML) for supply of crucial equipment required for the company's present operations as well as for its ongoing modernization and expansion programme.

Under the MoU, BEML will supply the required equipment at a mutually agreed price for the next three years.

The agreement will also enable SAIL to contain maintenance cost, as BEML will undertake maintenance of the equipment for their entire economic life with guaranteed equipment availability.

SAIL has been performing better than analyst expectations for the past couple of years. The stock price reduced quite significantly in the recent stock market crash. Investors can exit the stock if it gains in the next couple of months. There may be opportunity to re-enter at lower levels.