Stock Analysis: Steel Authority of India Limited March 22

Steel Authority of India Limited

 

Stock Analysis: Steel Authority of India Limited for March 22

About Steel Authority of India (SAIL) Ltd:

Steel Authority of India (SAIL) Ltd., incorporated in the year 1973, is a Large Cap company (having a market cap of Rs 42,585.72 Crore) operating in Metals - Ferrous sector. Steel Authority of India (SAIL) Ltd. key Products/Revenue Segments include Iron & Steel, By Products, Other Operating Revenue and Service Charges for the year ending 31-Mar-2021.

Overview:

1) Materials: Iron & Steel

2) Mid Cap: With a market cap of ₹42,585 cr

3) Risk: High Risk (Stock is 3.07x as volatile as Nifty)

4) 52 week: Low-67.60, High- 151.30, & Current Price- 103.10. 

 

Fundamental Analysis: 

Steel Authority of India (SAIL) Ltd.

For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 25,398.37 Crore, down 5.96 % from last quarter Total Income of Rs 27,007.02 Crore and up 27.01 % from last year same quarter Total Income of Rs 19,997.31 Crore. Company has reported net profit after tax of Rs 1,347.30 Crore in latest quarter.

 

Deliveries: Last trading day stock delivery percentage 40.70 %

Overview:

1) P/E Ratio: 3.22

2) EPS- TTM : 32.04

3) PB Ratio: 0.95

4) Returns: 1 week 5.01%, 1 month 12.55%, 3 month -5.24% and 1 year 42.70%

5) Shareholding Pattern:

Promoters: 65.00  Pledge 0.00

FII:  4.41

DII:  10.51 Mutual Fund: 3.91

Others: 20.08

 

What Is Fundamental Analysis?

Fundamental Analysis is the statistical method of performing fundamental analysis. It can help to learn the patterns in the historical data and applying it to the future. Essentially, it involves taking a look at the fundamental drivers of the stock and value of a stock. Using such methods, a very good analyst could make an astonishing return for his/her clients. However, there are several different methods of Fundamental Analysis depending on your personality and skill set. The common fundamental ways are Fundamental Indexing, fundamental Dividend Yield and Fundamental Discounted Cash Flow analysis. Fundamental Indexing When you buy a stock, you simply buy the whole company.

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Technical Analysis:

Moving average (on daily chart):

Coal India Ltd: Stock currently trading at Rs.103.10 which is above of 50 & 200 days moving average & below 100 days moving average.

Moving average crossover (on daily chart): 

Short term: 20 & 5 SMA crossover- bullish

Medium term: 20 & 50 SMA crossover- bearish

Long term: 50 & 200 SMA crossover- bearish

Indicators (on daily chart):

RSI (14): RSI is 56.27 i.e neutral

MACD (12,26,9): MACD recommendation is bullish

What is Technical Analysis and How Does it Work?

1. Introduction to Technical Analysis:

Technical analysis charts study the charts of a security for forecasting its price movement either in the short-term or long-term.

Technical analysis charts study the charts of a security for forecasting its price movement either in the short-term or long-term. One way to do this is through chart patterns on a stock’s price and volume. Chart patterns are formations that appear on a stock’s chart, which can signal when it will change direction.

There are many different types of chart patterns, but they all have one thing in common: They identify an entry point into a trade where an investor can make money by identifying when stocks will change direction.

2. Meaning of Charts and Patterns in Technical Analysis:

Technical analysis Charts is a way of forecasting the future value and movements of financial instruments or currencies by analysing statistics generated by price movements over time.

Technical analysis charts are trained to recognize patterns in the market that indicate what might happen next. It is a good idea to get acquainted with some basic patterns as they can serve as an indicator for future price movement.

Patterns like are Head and Shoulders, Flags, Pennants, Triangle, and Rectangle patterns will be discussed in this section.

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Strengths:

1)  The company has shown a good profit growth of 115.39% for the Past 3 years.

2)  The company has significantly decreased its debt by 16,450.47 Cr.

3)  Company’s PEG ratio is 0.04.

4) The company has a good cash flow management; CFO/PAT stands at 8.09.

 

Limitations:

1)  The company has shown a poor revenue growth of 6.29% for the Past 3 years.

2)  Company has a poor ROE of 6.78% over the past 3 years.

3)  Company has contingent liabilities of 38,137.61 Cr.

 

Entry Point: Good time to consider, as stock is not in overbought zone.

Short term target: The short term target (2 months to 6 month) for Steel Authority of India (SAIL) Ltd:

Target 1: Rs.115 (one month)

Target 2: Rs.125 (2-3 months)

Target 3: Rs.140 (6 months)

 

Stop loss:

Stop Loss : Rs. 93

SAIL (1 Day Chart)

 

About The Post 

Through this article, I shared with you some information about Steel Authority of India (SAIL) Ltd. If you like this article then share with your friends so that they can plan trading or long term investment from today. Apart from this if you have any problem or suggestion or feedback, then email me. I will try to help you.

Disclaimer

Stock Analysis by Ibrahim Ansari

Source: ETmarkets, NSE, Tickertape & Ticker.finology.in