Stock market analyst Mileen Vasudeo has maintained 'hold' rating on Steel Authority of India Ltd (SAIL) stock with a short term target of Rs 236.

According to analyst, the interested investors can buy the stock with a strict stop loss of Rs 190.

The stock of the company, on Sep 15, closed at Rs 204.10 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 258.55 and a low of Rs 158 on BSE.

Current EPS & P/E ratio stood at 15.98 and 12.65 respectively.

Steel Authority of India Ltd (SAIL) has chosen six merchant bankers to deal with the initial stage of the company's forthcoming follow-on public offer (FPO).

The selected banking institutions comprise SBI Capital, Deutsche Bank, Enam Securities, HSBC, JP Mogran Bank and Kotak Mahindra Capital.

SAIL is making plans to strengthen the share of higher value-added products to 55% as compared to 37% at the moment of its overall output by branching out into new regions like the fabrication of cold rolled grain-oriented steel used in making tool for power facilities and 70 mm pipes for transporting natural gas across India.

SAIL chairman Chandra Shekhar Verma, stated, "The country will be adding over 25,000 MW of power every year, which will generate a huge demand for new steel products, such as plates required for making super critical boilers and transformers."