Buy SAIL With Target Of Rs 184
Technical analyst Salil Sharma maintained 'buy' rating on Steel Authority of India Limited (SAIL) stock to attain a target of Rs 184.
According to analyst, the investors can buy the stock with a stop loss of Rs 156.
The stock of the company, on Feb 03, closed at Rs 164.40 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 258.55 and a low of Rs 157 on BSE.
Current EPS & P/E ratio stood at 13.22 and 12.27 respectively.
SAIl announced that its up to $1.9 billion share sale could be initiated by March end, after the steel manufacturer takes a final verdict early next week on top handlers for the offer.
The administration had forwarded notices during January 2011 to some of the short-listed banking institutions for the SAIL offering, asking if there was any clash of interest, after they also dealt competitor Tata Steel's $770 million share sale.
"We discussed the legal position. We will be in a position to take a final decision by early next week. We will still be able to launch the offer within this financial year," SAIL Chairman CS Verma stated.
The administration will sell around 5% in the country's biggest domestic steel manufacturer that has a twelve-monthly capacity of about 15 million tonnes.
SAIL will issue novel shares up to 5% of its subsisting share capital, to finance expansions.
Moreover, SAIL is also making discussions to establish a 3 million tonne steel facility in Mongolia with an overall investment of around Rs 13,500 crore.