Steel Authority of India (SAIL) and Rashtriya Ispat Nigam (RINL) are in the process of escalating its capacity.

The expansion plan would raise the capacity of SAIL from 14.6 million tons of hot metal to 26 million tons by 2010 at an estimated cost of around Rs 530 billion. SAIL is also planning to swell its capacity further to 60 million tons per annum by 2020.

Further, Rashtriya Ispat Nigam (RINL) would augment its capacity from the present level of 3 million tons of hot metal to 6.3 million tons by 2009-10 at an estimated cost of around Rs 90 billion. RINL also plans to enhance capacity to 16 million tones per annum by 2020. Earlier this year SAIL, RINL and NMDC signed an MoU for setting up a 4 million tons steel plant in Chhattisgarh.

SAIL is looking good for intraday trading in today’s session. Interested day traders can enter the stock around Rs 278o achieve an intraday target of Rs 289.

Today, SAIL stock opened at Rs. 282, after the previous close of Rs. 279.55 at BSE. Presently (12:30 pm), the stock is trading 1.02% up at Rs. 282.35 on BSE.

The stock opened at Rs. 282.90, after the previous close of Rs. 280.05 at NSE. At present, the stock is trading 0.62% up at Rs. 281.80 at NSE.

The day traders are suggested not to sell this stock before achieving the said intraday target.

SAIL is currently trading at a P/E multiple of 17.68. The net profit for the last quarter was 1700.24 crore, and the company has great expectations from the results to be announced next month.