Stock market analyst Ashwani Gujral has maintained 'Buy' rating on Steel Authority of India Ltd (SAIL) to achieve a target of Rs 195 in 1-2 trading sessions.

According to Mr. Gujral, interested traders can buy the stock with a strict stop loss of Rs 158.

The shares of the company on Thursday (Oct 29) closed at Rs 168.05 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 197.50 and a low of Rs 55.25 on BSE. Current EPS and P/E of the stock stood at 13.58 & 12.70 respectively.

SAIL, on Oct 23, declared that the steel ministry has given `in principle` authorization of department of disinvestment for further public offer (FPO) equal to 10 per cent of subsisting paid-up equity capital by the company.

Besides, it has approved disinvestment of equal size of equity held by Indian administration in two discrete percentages, each comprising 5% of FPO + 5% offer for sale.

This is subject to accomplishment of certain terms comprising obtaining authorization of cabinet committee on economic affairs (CCEA).

After CCEA authorization, the timing for the above offers would be determined viewing, inter-alia, SEBI rules and persisting market considerations and also execution of conditions, if any, stipulated in the CCEA authorization.

Steel Authority of India (SAIL) also declared that it will not raise its products costs for November following stable market situation.

The company has increased steel rates in Aug and Sept by up to Rs 1,500 per ton. Owing to the downfall in the global market, the company SAIL decided against raising steel prices in October.