Steel Authority gets Buy upgrade on H2 outlook
pre-market1 source ↓machine-written, see hownot a recommendation
- SAIL close
- ₹161.00
- On the day
- -0.62%
- Futures OI, long unwinding
- -0.0%
- Put-call ratio
- 0.25
- Max pain
- ₹175.00
ICICI Securities upgraded Steel Authority of India to Buy from Add and set a target price of ₹204, citing stronger realisations, sales volumes and an expected recovery in operating performance during the second half of FY27. The brokerage said Q2FY27 EBITDA was ₹4,210 cr, up 67% year on year and 2% quarter on quarter, broadly in line with its estimate. The ₹204 target is based on a 6x FY28E EV/EBITDA valuation. 📈
The report said the larger part of the company’s operational weakness was behind it, while higher steel spreads and firm volumes could support a stronger H2 performance. It expects EBITDA per tonne to recover as realisations improve. The company plans to expand capacity from 20 million tonnes to 35 million tonnes over the next four to five years through proposed investment of ₹1 lakh cr. ICICI Securities considered the plan optimistic and expects meaningful capex to begin only from FY29, which could keep net debt comfortable in the near to medium term. Steel demand, spreads and capital spending remain the key sector drivers. 🏭
OI Charts data showed the shares closed at ₹161 on 29 Oct 2026, down 0.6% for the session, with volume of 1.26 cr shares. The stock fell 4.7% over five sessions and 13% over 20 sessions, while its 52-week range stood between ₹124 and ₹209.70. The brokerage target is 26.7% above the latest close, although the recent price trend remained weak.
In derivatives, futures open interest was broadly unchanged and showed long unwinding, while futures traded at a 1.77% premium. The put-call ratio was 0.25, indicating a call-heavy options position. For the 23 Nov 2026 expiry, the ₹180 strike had the largest call open interest and ₹170 had the largest put open interest; max pain was ₹175. These levels define the immediate positioning ahead of expiry.
Investors will watch whether steel realisations and spreads improve in H2, whether sales volumes sustain the earnings recovery, and how quickly the planned capacity expansion converts into actual capex. Price action around ₹170–₹180 and changes in futures positioning will also indicate whether the recent decline is stabilising.
Source: TradingView, 29 Oct 2026; news.google.com, 30 Oct 2026
Not investment advice. For informational purposes only.