SAIL shares rise over 2% post Q4 beat: Should you buy, hold or sell?

Shares of Steel Authority of India (SAIL) after the company’s Q4 show opened higher in trade in Thursday’s session (May 29, 2025). At the last count at around 12:56 pm, shares of the company traded strong by 0.97 per cent or Rs 1.25 at Rs 130.05 per share.

SAIL Q4FY25 review

In Q4, the company beating estimates has come with good results with profit rising 16 per cent on-year to Rs 1,178 crore versus Rs 1,012 crore in the same period of the previous year. Topline at the company also increased 5 per cent as againsst estimates of Rs 29,197 crore to Rs 29,316 crore. 

In the same period of the previous year, the revenue stood at Rs 27,957 crore.

Meanwhile, the company posted Rs 3,480 crore in earnings before interest, taxes, depreciation and amortisation, with a similar figure of Rs 3,475 crore reported in the same quarter last year. Analysts estimated EBITDA to come in at Rs 2,326 crore.

Furthermore, EBITDA margin at the firm also came in stronger-than-estimates at 11.9 per cent. However, it declined year-on-year as it was at 12.4 per cent in Q4FY24.

Analysts and brokerage on SAIL

Global brokerage  Morgan Stanley has given an underweight call on the stock with the target at Rs 90 per share, implying a potential downside of 30 per cent from the previous close. The brokerage said that the Q4 volume was 5.3 mt, up 17 per cent on-year and over 20 per cent sequentially and much higher than estimate of  4.8 mt adjusted for higher volumes.

The brokerage noted that the company realised Rs 690 crore in revenue from rail price revisions for FY24-25.

Furthermore, the Opex/t was 2 per cent better than estimates, with raw material costs lower than expected.

Consequently, EBITDA of Rs 3,480 crore was 24 per cent ahead of estimates.