SAIL share price edges lower ahead of Q4 Results: Here is what analysts expect
Steel Authority of India Ltd or SAIL is expected to benefit from decline in the raw material prices on a sequential basis though the Steel prices have seen some pressure.
Due too weak local consumption and demand in China, rising exports and excess Chian supplies kept pressure on global pricing. China remains largest consumer of commodities in the world and hence China supply demand remains key for global metal prices. The safeguard duty in India is supporting domestic prices, even though the US tariff conflict has turned into a possible challenge for the sector.
Average Hot Rolled Coil or HRC price benchmark fell in Q4FY25, down 11% year on year as per Axis Securities. On sequential basis with price recovery taking place towards the end of Q4FY25. the HRC price benchmark was down just 1% sequentially.
As per Motilal Oswal Financial Services Data Coking coal (premium HCC) continued its downward trajectory, with average premium HCC coking coal prices declining by $ 20/per tonne sequentially to $200 a tonne in 4QFY25. In 4QFY25, ferrous companies have projected a coking coal advantage of $10–15 per tonne, as per MOFSL
Also, iron ore prices largely have remained stable on a sequential Basis. Analysts have been expecting subdued costs to be the main reason for the margins to improve. The improvement in Steel prices will somewhat be apparent starting in 1QFY26.
Axis Securities expect SAIL's Earnings Before Interest Tax Depreciation and Amortisation or Ebitda to increase on a sequential basis by 35%
Motilal Oswal also expects Volume to see healthy growth and Q4 performance to be driven by some recovery in steel price and reduced coal costs.
MOFSL expects Net profit for SAIL to come at around ₹ 790 crore , an improvement over ₹ 140 crore in the previous quarter though still lower than ₹ 1130 Crore in the year ago quarter
The revenues of SAIL at around ₹ 29220 crore are likely to rise 19.3% sequentially and 11.3% year on year as per MOFSL estimates
Management guidance on the debt reduction plan will be watched by investors as per analysts.
Also the guidance on both domestic and international steel prices and capital expenditure plans by SAIL will be watched for as per analysts
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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