SAIL share price target 2023, 2024, 2025, and 2030: In this article, you will learn about SAIL share price target 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned SAIL share price target 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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SAIL Share Price Target 2023, 2024, 2025, and 2030
Steel Authority of India (SAIL) is the largest steel-making company in India and one of the seven Maharatna’s of the country’s Central Public Sector Enterprises was incorporated on January 24, 1973. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products.
The Company is engaged in the manufacturing of Iron and Steel products and generates revenues from the sale of Iron and Steel Products.
Share Holding Pattern
Domestic Demand and Pricing for Steel
With steel mills running at optimal capacity (especially the primary ones), crude steel output peaked in January at around 10mt. We expect utilization levels to remain high, as mills would want to get the maximum out of high steel prices. We expect finished steel demand to be strong, despite high prices, as steel accounts for a fraction of input costs for most end-users. Multiple government infrastructure projects are in the pipeline which should translate to demand.
Given the recovery in domestic demand, Indian steel mills raised prices since August 2020 due to higher raw material prices amid tight supply. Price hikes for finished flats have been especially steep, considering: 1) a supply shortage (backlog in export orders and faster-than-expected domestic demand recovery), and 2) robust demand from the auto segment (restocking by OEMs).
Prices corrected slightly in February from the January peak, as high mill utilization potentially outpaced demand. However, this pressure dissipated in late February and early March, after the mills booked substantial export volumes. Hence, we believe the scope for prices falling further is limited, and current levels are likely to be sustainable.
Indian steel manufacturers had increased their export allocations amid COVID-19 lockdowns. However, export volumes have been declining since June, amid domestic demand recovery and better realizations in the domestic market. India turned a net importer in January 2021 because of strong domestic demand. Recently, primary mills have again become active in exports, encouraged by higher Chinese prices and demand.
SAIL is aggressively spending on R&D to introduce new products to strengthen its market position and entering into new business segments to scale up its business.
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SAIL Share Price Target 2023
The brand “SAIL SeQR” reinforcement bars is growing from strength to strength by clocking 2.5 lakh tonnes during FY 2020-21, which helps in strengthening uniform brand experience in the retail channel. SAIL is working towards expanding the 2-Tier and 1-Tier distributorship network across India, which will further strengthen its position in the B2C space.
As a part of supplementing this initiative, an online e-portal has been launched during FY 2020-21 enabling the smallest of demand to be serviced through the 2-Tier distributorship network. SAIL has been working towards focused brand-building initiatives on the “NEX” brand of structural by holding webinars and workshops with key influencers. As SAIL is aggressively entering into new segments with new product launches and trying to capture the 2-tier and 1-tier, which will further drive growth in sail businesses, SAIL share price target for 2023 is Rs 128.
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SAIL Share Price Target 2024
Riding on a positive consumption and demand trend in the steel industry, the coming times look on the green side. WSA in its forecast sees a 2.7% growth in steel demand reaching 1,924.6 MT in 2022. At the same time, it is also believed that For the future, structural changes in a post-pandemic world will bring about shifts in steel demand shape.
The steel industry will see exciting opportunities from rapid developments through digitization and automation, infrastructure initiatives, reorganization of urban centers, and energy transformation. The growth in consumption in India has been forecasted at 19.8% in 2021 (106.1 MT) and 5.9% in 2022 (112.3 MT). Steel companies will have a lot of opportunities in the future, Steel prices will also increase in the coming years due to low production from China, which results in higher profits for steel companies. SAIL share price target for 2024 is Rs 160.
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SAIL Share Price Target 2025
With an accelerated push from the policies proposed by the Government regarding steel-intensive segments such as infrastructure, capital goods, and construction, the outlook for the steel industry remains positive. The expected increase in Government expenditure in capital-intensive projects.
A sharp rebound in growth is expected after the Covid-19 pandemic is over and steel demand is expected to remain buoyant. The newly commissioned mills are oriented towards products required to cater to the infrastructure development. High export potential for markets of the Middle East and Southeast Asia. Potential for improving product quality and reducing cost through operational efficiency and utilization of the new and modernized units. By considering all the above-mentioned opportunities steel companies have to grow their business, SAIL share price target for 2025 is Rs 230.
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SAIL Share Price Target 2030
The outlook for steel companies is expected to be positive because Indian steel companies have started boosting steel production capacity. In addition to the huge scope for growth due to India’s comparatively low per capita steel consumption, the pandemic has accelerated some key trends, which will bring about shifts in steel demand on account of the Government of India’s focus on strengthening domestic manufacturing under ‘Atmanirbhar Bharat Abhiyan’, the introduction of ‘Production Linked Incentive Scheme’ to encourage the manufacturing in various industries, investment in infrastructure projects, thriving automobile and railways sector, etc.
SAIL continues to be among the leading steel producers of the Nation. Multi-located production units give SAIL an edge over other domestic steel players. A large number of new and modernized units after completion of the ongoing modernization and expansion.
Well-established nationwide marketing and distribution network helps in enhancing the reach of SAIL products across the Country. The most diversified product range offered by any domestic steel company. Availability of land bank at existing Plant/Unit locations for future brownfield expansion. Input security 100 percent integration in iron-ore. Highly qualified professionals with experience in steel making. Considering the strengths of SAIL, and the capability that steel companies have to grow in the future, SAIL share price target for 2030 is Rs 610.
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SAIL Share Price Target 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|SAIL share price target 2023||Rs 128|
|SAIL share price target 2024||Rs 160|
|SAIL share price target 2025||Rs 230|
|SAIL share price target 2030||Rs 860|
Frequently Asked Questions
Is SAIL good for long term?
Yes, if you want to hold SAIL for long term then you can buy without even a second thought. SAIL is aggressively spending on R&D to introduce new products to strengthen its market position and entering into new business segments to scale up its businesses.
Is SAIL a good buy?
Yes, SAIL is a good buy. SAIL is one of the best companies in steel sector, with good management, good financials, and fundamentals.
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