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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500113 | NSE: SAIL

Fundamental Analysis of Steel Authority of India Ltd

About the Company - Steel Authority of India Ltd (SAIL)

Steel Authority of India (SAIL) Ltd. is a Public Limited Listed company incorporated on 24/01/1973 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L27109DL1973GOI006454 and registration number is 006454. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 103473.32 Cr. and Equity Capital is Rs. 4130.53 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SteelIspat Bhawan, Lodi Road, New Delhi Delhi 110003secy.sail@sail.in
http://www.sail.co.in
Management
NamePosition Held
Mr. Amarendu PrakashChairman
Mr. Vijendla Srinivasa ChakravarthyDirector
Mr. Atanu BhowmickDirector
Mr. Brijendra Pratap SinghDirector
Mr. Anil Kumar TulsianiDirector - Finance
Mr. Anirban DasguptaDirector
Mr. Krishna Kumar SinghDirector
Mr. Arvind Kumar SinghDirector
Mrs. Sukriti LikhiGovernment Director
Mr. Abhijit NarendraGovernment Director
Mr. Ashok Kumar TripathyIndependent Director
Mr. Kanhaiya SardaIndependent Director
Mrs. Neelam SonkerIndependent Director
Mr. Sagi Kasi Viswanatha RajuIndependent Director
Dr. Gopal Singh BhatiIndependent Director
Prof. (Dr) K JayaprasadIndependent Director

Steel Authority of India (SAIL) Ltd. Share Price Update

Share PriceValue
Today₹133.65
Previous Day₹139.10

Basic Stock Data of Steel Authority of India Ltd

Market Cap 53,511 Cr.
Current Price 130
High / Low150/77.6
Stock P/E15.8
Book Value 136
Dividend Yield1.14 %
ROCE5.89 %
ROE3.57 %
Face Value 10.0

Data Source: screener.in

Competitors of Steel Authority of India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Visa Steel Ltd 233 Cr. 20.122.3/9.80 70.00.00 %7.45 %% 10.0
Steel Exchange India Ltd 1,902 Cr. 16.018.4/7.80 5.060.00 %8.56 %11.9 % 1.00
Shyam Metalics & Energy Ltd 17,948 Cr. 643772/25316.8 3200.28 %15.0 %13.0 % 10.0
Aanchal Ispat Ltd 17.9 Cr. 8.6019.0/7.36 8.500.00 %20.1 %67.6 % 10.0
SAL Steel Ltd 208 Cr. 24.530.6/12.9 4.930.00 %8.12 %8.95 % 10.0
Industry Average95.38 Cr142.443.3681.70.06%11.85%20.29%8.2

Steel Authority of India Ltd (SAIL) Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales16,92519,83623,28520,64326,82825,24730,75924,02926,24625,04229,13124,35929,712
Expenses15,02314,75517,13114,07519,79421,84526,42121,72725,51122,96426,20622,71025,837
Operating Profit1,9025,0806,1546,5687,0343,4024,3382,3027352,0792,9241,6493,875
OPM %11%26%26%32%26%13%14%10%3%8%10%7%13%
Other Income468386205173256-31525314512509519527-174
Interest720670540503439316440374506640517613605
Depreciation9909811,1581,0261,0561,0491,1441,1941,1831,2211,3651,2751,327
Profit before tax6603,8154,6615,2125,7952,0063,2791,047-4437261,5622881,770
Tax %34%62%26%25%25%24%24%23%26%25%26%26%26%
Net Profit4371,4683,4703,8974,3391,5292,479804-3295421,1592121,306
EPS in Rs1.063.558.409.4410.503.706.001.95-0.801.312.810.513.16

Steel Authority of India Ltd Quarterly Chart

Steel Authority of India Ltd (SAIL) Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales46,60144,89146,80446,03238,79344,21057,49666,97361,66469,114103,477104,448108,244
Expenses40,43239,98242,64641,21741,62844,09452,78857,16751,40056,33782,11496,41097,717
Operating Profit6,1694,9104,1574,815-2,8341154,7089,80710,26412,77621,3638,03810,527
OPM %13%11%9%10%-7%0%8%15%17%18%21%8%10%
Other Income1,8849232,0718924253786542832801,3499021,8561,382
Interest1,0858461,0471,5552,3002,5282,8233,1553,4872,8171,6982,0372,375
Depreciation1,6861,5271,8361,9072,4042,6823,0663,3853,7564,1034,2754,9645,188
Profit before tax5,2823,4603,3462,245-7,114-4,716-5273,5493,3027,20616,2922,8924,346
Tax %32%33%21%14%41%42%47%34%36%42%25%25%
Net Profit3,5942,3292,6521,939-4,176-2,756-2812,3492,1214,14812,2432,1773,219
EPS in Rs8.705.646.424.93-10.11-6.67-0.685.695.1310.0429.645.277.79
Dividend Payout %23%35%31%41%0%0%0%9%0%28%30%28%

Steel Authority of India Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-35.20%13.87%-26.89%-315.37%34.00%89.80%935.94%-9.71%95.57%195.15%-82.22%
Change in YoY Net Profit Growth (%)0.00%49.07%-40.75%-288.48%349.37%55.80%846.14%-945.65%105.27%99.59%-277.37%

Steel Authority of India Ltd (SAIL) Growth

Compounded Sales Growth
10 Years:9%
5 Years:13%
3 Years:19%
TTM:2%
Compounded Profit Growth
10 Years:-2%
5 Years:59%
3 Years:-10%
TTM:-30%
Stock Price CAGR
10 Years:9%
5 Years:26%
3 Years:28%
1 Year:70%
Return on Equity
10 Years:5%
5 Years:11%
3 Years:13%
Last Year:4%

Steel Authority of India Ltd (SAIL) Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital4,1314,1314,1314,1314,1314,1314,1314,1314,1314,1314,1314,1314,131
Reserves36,14737,51439,15439,64136,02132,91232,81635,51637,38041,27650,08150,61651,889
Borrowings17,40522,53926,02032,14635,14141,39645,40945,17054,12737,67717,28430,77330,714
Other Liabilities20,98622,50624,76726,93226,23429,40533,33933,38531,56035,00748,88545,26242,874
Total Liabilities78,66986,68994,072102,849101,527107,843115,694118,201127,198118,090120,381130,782129,608
Fixed Assets18,79618,38428,17539,01145,94250,30058,62561,37469,03467,61873,67773,54372,317
CWIP28,32836,16133,95829,32824,92723,27518,39516,0148,7538,8814,7104,8915,539
Investments697391612,2802,4752,6292,9753,2403,4423,7574,1854,418
Other Assets31,47732,07131,84734,45028,37731,79236,04437,83846,17038,14938,23748,16347,334
Total Assets78,66986,68994,072102,849101,527107,843115,694118,201127,198118,090120,381130,782129,608

Steel Authority of India Ltd Reserves and Borrowings Chart

Steel Authority of India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,6682,8236,3132,5794,0432,1606,1647,215-61823,43030,987-5,290
Cash from Investing Activity -7,670-8,317-7,488-6,292-4,805-5,467-6,480-3,694-4,261-3,295-3,976-3,371
Cash from Financing Activity -5,0843,0091,0173,7757433,302269-3,5495,003-19,808-27,3988,587
Net Cash Flow-11,087-2,485-15863-20-5-47-28125328-387-74

Steel Authority of India Ltd (SAIL) Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days383743263024252552431719
Inventory Days206299272370308274199243370207170180
Days Payable49635677829087899710714392
Cash Conversion Cycle19527325931925520913717932514444107
Working Capital Days5876504810-8-1077516-1929
ROCE %11%7%5%5%-6%-2%3%9%8%11%24%6%

Steel Authority of India Ltd Financial Efficiency Indicators Chart

Steel Authority of India Ltd (SAIL) Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%
FIIs4.32%5.01%5.38%4.41%4.58%4.22%4.31%4.34%4.69%3.82%3.69%4.34%
DIIs16.63%15.56%12.46%10.51%10.24%8.79%9.40%10.73%12.40%13.63%14.61%15.46%
Government0.07%0.08%0.08%0.08%0.00%0.09%0.00%0.00%0.00%0.00%0.00%0.00%
Public13.99%14.36%17.09%20.01%20.18%21.91%21.29%19.94%17.91%17.56%16.70%15.20%
No. of Shareholders5,33,0517,13,8769,56,56412,44,83614,66,89016,71,49916,27,16716,25,63715,21,98814,99,83614,83,37115,03,779

Steel Authority of India Ltd Shareholding Pattern Chart

No. of Steel Authority of India Ltd Shareholders

Steel Authority of India Ltd (SAIL) Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant ELSS Tax Saver Fund159000003.06196.6
Quant Active Fund129000002.15159.51
Kotak Equity Arbitrage Fund - Regular Plan126800000.45156.79
Edelweiss Arbitrage Fund112160001.74138.69
SBI Arbitrage Opportunities Fund104880000.51129.68
Quant Flexi Cap Fund88750003.78109.74
Tata Arbitrage Fund80800001.1499.91
Invesco India Arbitrage Fund75760000.7993.68
Aditya Birla Sun Life Arbitrage Fund71920001.1488.93
UTI Arbitrage Fund66160001.8881.81

Steel Authority of India Ltd ROCE Trend

Steel Authority of India Ltd EPS Trend

Steel Authority of India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)5.2729.6410.045.135.69
Diluted EPS (Rs.)5.2729.6410.045.135.69
Cash EPS (Rs.)15.7238.9818.8413.7613.34
Book Value[Excl.RevalReserv]/Share (Rs.)132.54131.25109.93100.5095.98
Book Value[Incl.RevalReserv]/Share (Rs.)132.54131.25109.93100.5095.98
Revenue From Operations / Share (Rs.)252.87250.52167.32149.29162.14
PBDIT / Share (Rs.)21.7653.7532.9226.9324.83
PBIT / Share (Rs.)9.7543.4022.9917.8316.63
PBT / Share (Rs.)5.4438.4316.317.528.05
Net Profit / Share (Rs.)3.7128.638.914.665.15
NP After MI And SOA / Share (Rs.)5.2729.6410.045.135.69
PBDIT Margin (%)8.6021.4519.6718.0315.31
PBIT Margin (%)3.8517.3213.7411.9410.25
PBT Margin (%)2.1515.349.745.034.96
Net Profit Margin (%)1.4611.425.323.123.17
NP After MI And SOA Margin (%)2.0811.836.003.433.50
Return on Networth / Equity (%)3.9722.589.135.105.92
Return on Capital Employeed (%)4.9622.1913.058.989.00
Return On Assets (%)1.6610.193.471.671.99
Long Term Debt / Equity (X)0.110.150.430.830.77
Total Debt / Equity (X)0.460.240.781.231.04
Asset Turnover Ratio (%)0.840.870.560.500.57
Current Ratio (X)0.860.850.780.910.77
Quick Ratio (X)0.200.230.360.380.30
Inventory Turnover Ratio (X)2.201.961.071.351.77
Dividend Payout Ratio (NP) (%)61.6728.009.950.000.18
Dividend Payout Ratio (CP) (%)18.8020.755.000.000.07
Earning Retention Ratio (%)38.3372.0090.050.0099.82
Cash Earning Retention Ratio (%)81.2079.2595.000.0099.93
Interest Coverage Ratio (X)4.4113.074.833.193.25
Interest Coverage Ratio (Post Tax) (X)1.628.172.291.771.80
Enterprise Value (Cr.)59386.2953305.9767349.1660276.6763327.15
EV / Net Operating Revenue (X)0.560.510.970.970.94
EV / EBITDA (X)6.612.404.955.426.17
MarketCap / Net Operating Revenue (X)0.320.390.470.150.33
Retention Ratios (%)38.3271.9990.040.0099.81
Price / BV (X)0.620.750.710.220.55
Price / Net Operating Revenue (X)0.320.390.470.150.33
EarningsYield0.060.300.120.220.10

Steel Authority of India Ltd Profitability Ratios (%)

Steel Authority of India Ltd Liquidity Ratios

Steel Authority of India Ltd Liquidity Ratios (%)

Steel Authority of India Ltd Interest Coverage Ratios (X)

Steel Authority of India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Steel Authority of India Ltd

Fair Value: ₹77.59

The stock is overvalued by 40.32% compared to the current price ₹130

*Investments are subject to market risks

Strength and Weakness of Steel Authority of India Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of 27.67, which is a positive sign.
  2. The company has higher reserves (40,074.08 cr) compared to borrowings (33,523.15 cr), indicating strong financial stability.
  1. The stock is trading at a high valuation with an average P/B ratio of 22.12 and average Dividend Yield of 11.42%.
  2. The stock has a low average ROCE of 6.75%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 203.83, which may not be favorable.
  4. The company has not shown consistent growth in sales (63.85) and profit (-37.69).

Should I Buy Steel Authority of India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Steel Authority of India Ltd:
    1. Net Profit Margin: 1.46%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 4.96% (Industry Average ROCE: 9%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 1.62
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 0.20
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✗ Stock P/E: 15.8 (Industry average Stock P/E: 13.12)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.46
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Steel Authority of India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE