SAIL, Bajaj Finance and Patanjali Foods were among major gainers on Friday. The stocks are looking strong on technical charts. SAIL has witnessed strong buying at lower levels and with firm steel prices in the global markets, we can expect higher levels for the stock. Bajaj Finance shares jumped 1.9 percent on the Friday. The stock is trading close to its 52-week highs and looks bullish on technical charts. Analysts, meanwhile, remain nuanced: select deep value in metals, overwhelming bullishness in consumer and lending, and a clear call for investors to deduce risk appetite amid evolving market paradigms.

Steel Authority of India Ltd. (SAIL): Expansion Amid Sector Headwinds

SAIL’s current trajectory balances global ambition against domestic sector turbulence. The company’s launch of a Dubai office marks an assertive step toward internationalization, primed to tap steel demand in the Middle East while mitigating over-reliance on Indian markets. This is further complemented by initiatives for “green steel” collaboration with Ras Al Khaimah—potentially positioning SAIL as a credible player in the impending global low-carbon transition.

Yet, these growth moves occur against modest financial backdrops. For the fiscal year ended March 2025, SAIL posted its first revenue contraction in three years—down 2.9%. Interest costs stayed contained at 2.73% of operating revenue and employee costs at a relatively steep 11.39%, the latter exposing margin vulnerabilities vis-à-vis private-sector rivals.

Technically, SAIL flashed bullish 5-day and 10-day EMA crossovers as of July 18, 2025, sparking near-term buy signals and supporting a tactical upside outlook. However, the PE ratio at 23.27 and PB at 0.94 reinforce its value status, especially when juxtaposed with the company’s volatile 12-month trailing return.

Analyst sentiment has tilted to caution, with a consensus “Hold” from 23 brokerages: only 1 “Strong Buy” and 3 “Buy” versus 4 “Sell” and 5 “Strong Sell.” The notable split reflects both the cyclical nature of steel and the company’s operational levers. Among outliers, Axis Securities targets a strong recovery at ₹195, citing global reach, while Prabhudas Lilladher’s conservative ₹95 stance warns of cyclical risks and cost drag.

Takeaway: SAIL offers a contrarian play on sector normalization and export-driven optimism, but investors should closely watch revenue trajectory, cost controls, and macro catalysts influencing steel demand.

Bajaj Finance Ltd.: Lending Leader Flexes Its Growth Muscle

Fresh from posting another set of stellar numbers, Bajaj Finance continues to stand out in the NBFC universe. The Q1 FY26 report revealed a 17% jump in net profit to ₹4,480 crore and a parallel rise in operating revenue. The company’s asset book remains its engine: Assets Under Management soared 25% year-on-year to nearly ₹4.41 lakh crore, with buoyant customer additions and a thriving deposit portfolio.

Market participants reacted accordingly. The shares climbed 2.03% to ₹942.00 post-results on July 18, having gained over 0.91% across five trading sessions. Bajaj Finance’s digital prowess and entrenched distribution insulated it from sectoral headwinds caused by NBFC regulatory changes and broader market volatility stemming from SEBI’s policy tweaks.

Management’s reaffirmed five-year Long Range Plan (LRS) aims for a considerable 3-4% share of total credit and 4-5% of retail credit by FY27. Importantly, Bajaj Finance commits to its NBFC identity rather than bank conversion, simultaneously rolling out products in auto loans, microfinance, and deeper digital integration.

Key valuation metrics project resilience: a market cap of ₹58,538.58 crore, loan growth guidance of 25–27% CAGR, NPAs down to 1.14% (gross) and 0.41% (net), and a sector-leading return on equity (RoE) between 19–21% and return on assets (RoA) at 4–4.5%.

Analyst coverage remains bullish and wide-ranging:

• Morgan Stanley: “Overweight” – underpinned by growth, initiatives, and loan portfolio quality.
• ICICI Securities: “Buy” with a ₹7,250 target — confidence in omnipresence strategy, management execution, and new lending verticals.
• Axis Bank: Highlighted as a peer performer, with a "Buy" and ₹1,100 target.

Takeaway: Strategic clarity, financial discipline, and ongoing innovation position Bajaj Finance as the gold standard in Indian NBFCs, even as sector regulation evolves and market paradigms shift.

Patanjali Foods Ltd.: Bonus Catalyst Spurs a Bullish Surge

Patanjali Foods sprang into the spotlight on the back of a board-sanctioned 2:1 bonus share issue (pending approval), designed to elevate stock liquidity and appeal to retail investors. The ensuing effect was dramatic: the stock rocketed 17% in a week post-announcement, surging to ₹1,944.90 on July 18, 2025, and inching close to its record peak.

Several operational and technical signals reinforced this bullish momentum. A weekly MACD crossover—traditionally a precursor to strong upside—coincided with a marked 85% year-over-year reduction in investing cash outflows, suggesting tightened capital spend and a signaling better future returns for investors. The recent revocation of the “prohibition on Patanjali Organic Wild Honey” further removed lingering regulatory constraints, clearing the runway for renewed segment revenue growth.

Patanjali Foods now boasts a market capitalization of ₹70,324.01 crore, a PE of 53.16, and a PB of 6.08. Investors have enjoyed +21.3% returns on a one-year basis and staggering 82.9% gains over three years.

Consensus analyst targets—synthesized from major research aggregators—range from ₹2,116 to ₹2,158 in the next year, with upside projections going as high as ₹2,355. Forecasts call for annualized net income growth of 35% and operational income expansion at 21% for the upcoming two-year period.

• HDFC Securities: “Strong Buy” at ₹2,295 – bonus and demand tailwinds cited.
• ICICI Direct: “Buy” at ₹1,750 – focus on operations and renewed regulatory clarity.

Takeaway: With potent catalysts in play, Patanjali Foods is at a bullish inflection point. The confluence of corporate actions, technical triggers, and sector demand makes the stock a favorite among research houses in the medium term.

Strategic Outlook: Investment Takeaways Across Sectors

SAIL represents a classic value candidate for investors willing to ride out cyclical lows, banking on international expansion and sector stabilization. Bajaj Finance maintains its status as a robust compounder, benefiting from unmatched execution, market depth, and innovation. Patanjali Foods, meanwhile, leverages both corporate events and sector shifts, with the bonus issue vividly demonstrating management’s commitment to shareholder value.

For discerning investors, closely tracking quarterly results, board initiatives (bonuses or dividends), and regulatory changes will remain paramount. As always, entry points and holding periods should align with individual risk appetites and the prevailing macro-climate. The exceptional runs in Bajaj Finance and Patanjali Foods especially warrant consider-ation for those seeking growth, while SAIL’s patient story may suit those betting on a steel cycle revival.