Sunday, July 3, 2016

Steel Authority of India Ltd: Buy @46.10

1. Steel Authority of India Ltd is a 10 rupee face value Steel and iron company.
Brief Details of Company:- Steel Authority of India Limited -A Maharatna Status Public Sector Enterprise.SAIL is India's largest steel producing company with a turnover of Rs.43,337 crore in the year 2015-16. The company is among the seven Maharatnas of the country's Central Public Sector Enterprises. SAIL has five integrated steel plants, three special plants, and one subsidiary in different parts of the country.
Source:-https://www.sail.co.in/
2. Year high of Steel Authority of India Ltd is 65.20 year low was 33.50 and the stock traded at 46.15, Year high/ low ratio is below two so as my theory current market price is stable for fresh buy. If you are new reader of my blog and not familiar with my research terms, then please see my research terms at this link

3. Promoters of Steel Authority of India Ltd hold 75 % stake, and FII holds 4.99 %, LIC hold 10.94%. Promoters holding is sound. SAIL is a PSU company, so Govt of India is the promoter of this company.
Click here to see full list of FII & DII holding 
4.Steel Authority of India Ltd has a regular dividend history. See past dividends from SAIL:- ( please remember due to massive losses in balance sheet I think dividend may not continue in 2016)
EX DatePurpose
11/08/2015Final Dividend 0.25
18/02/2015Interim Dividend 1.75
18/02/2014Interim Dividend 2.02
02/08/2013Final Dividend 0.40
15/02/2013Interim Dividend 1.60
5. The base price of Steel Authority of India Ltd is 62.71. So Current market price 46.10 is near about 26.48% below the base price and no doubt this is the best time to buy SAIL.
Click here to download the last 3-year closing price &Graph
6. No any bonus issue , right issue and bulk deals are recorded in last two years.
6. Steel Authority of India Ltd net sale per share of FY 15-16 is 94.62.
7. Net sale per share is good at 94.62, so this stock has the chance to become a multi-bagger.
8. Book value of Steel Authority of India Ltd is 97.25, and CMP is lower than book value. So in book value term this stock is a value buy.
8. SAIL is a good stock and full-fill most of my stock screening criteria.
9. 200 DMA of Steel Authority of India Ltd is 45.14 So SAIL recently gives a positive breakout over his all the simple moving averages:-

Simple Moving Averages of SAIL
DAYSBSENSE
3043.0743.10
5043.1843.19
15043.0543.04
20045.1445.14
As per my book here fundamental target price of SAIL is 76.37.
 So if you want to hold SAIL for 1-3 Year long term view then hold it for target of 76.37 & If you want to buy SAIL for 3 months then target is 55.32 (20% above from here) and trading stop loss is 41.49 (10% below from here)
10. My recent updates :- RCF @ 45.65
11. Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read full disclaimer at the bottom of my blog.
12.Discloser: - I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of Steel Authority of India Ltd, so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Steel Authority of India Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not  received any type of compensation from the subject company(Steel Authority of India Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Steel Authority of India Ltd). 6. I have been not engaged in market making activity for the subject company (Steel Authority of India Ltd).


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