SAIL Q2 Review - Earnings Beat On Provisional Rail Price Revision; Growth Plan Intact: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Near-term earnings are likely to increase led by softening raw material prices partially offset by continued weakness in steel prices. Steel Authority of India Ltd. has depleted most of its high-cost coking coal inventory and is likely to see greater cost benefits from lower coking prices from Q3 FY25 onward. We raise our FY25E estimated Ebitda by 25% to Rs 110.9 billion (flat YoY) to factor in the impact of revenue recognized towards provisional rail price revision. We alter our FY26E Ebitda lower by 2% and introduce FY27 estimates. We expect a gradual recovery in Ebitda margins over the next few quarters led by-closing saleable steel inventory of 1.98mt as of Q2 FY25,reduction in share of semis in the product mix as Bokaro hot strip mill is reinstated after a maintenance shutdown, andhigher sales of long products to its key customer Indian Railways..SAIL is focused on debottlenecking and modernization of existing plants to enable 2 mt-3 mt incremental volumes over the next two to three years before, which will subsequently ramp up as SAIL commences larger capacity expansions to take the capacity from 20 mt to 35 mt by 2031. SAIL’s increased debt before the commencement of growth capex is likely to drag its valuations as the company expects debt to peak near 2028-29. We value SAIL at six times FY27E EV/Ebitda with a revised target price of Rs 129/share (Rs 131/share earlier), implying a 9% upside from current market price. Maintain Hold..Click on the attachment to read the full report:.Lupin Q2 Results Review - India, EU, Growth Markets Drive Earnings: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SAIL Q2 Review - Earnings Beat On Provisional Rail Price Revision; Growth Plan Intact: Systematix

The company is expected to see a gradual volume ramp up over the next two to three years primarily through ongoing debottlenecking projects, technological modernization of existing plants.

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SAIL Q2 Review - Earnings Beat On Provisional Rail Price Revision; Growth Plan Intact: Systematix

The company is expected to see a gradual volume ramp up over the next two to three years primarily through ongoing debottlenecking projects, technological modernization of existing plants.

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