Sail Share Price Target/prediction 2023,2024,2025,2030 | Sail Share Price Target/prediction 2025 | Sail Share Price Target | Sail Share Analysis | Sail Share Price Target/prediction 2030
Namaskar, Welcome To mayashares.com In previous article I have, Analyze the Tata Steel And I tried to predict It’s a share price target for upcoming years. Have you read that? If not, After reading this article visit them. Now, we analyze Sail Share Price Target/prediction 2023,2024,2025,2030.
In this series of stock analysis, We are trying to find out the great stocks, To build our fortune. In today’s article, I’m going to talk about Sail Share Price Target/prediction 2022,2023,2024,2025,2030.
Yeah, I know that no one knows the future. If I could, I would be richest man in the world.
But, We try to analyze its earning and its growth potential.
We also analyze the history and try to predict its future.
“Because nowhere in the world, history repeats as it repeats in the share market.”
OK, let’s start our digging deep to find out some interesting facts about the sales share.
Company Overview – Sail Share Price Target/prediction,2023,2024,2025,2030
Sail is known as Steel Authority of India limited. It is a Maharatna company. Sail is one of the largest producer of steel in India. Governments of India holds 65% of It’s a stake.
Initially it was Hindustan Steel that was designed to manage only one plant of Rourkela. But later, The supervision of Bhilai and Durgapur steel plant was also transferred to Hindustan Steel.
In January 1973, Ministry of Steel and Mines drafted a policy to create a holding company, This led the formation of Steel Authority of India Limited with authorized capital of 2000 crore.
It was responsible for managing the five Integrated plants of Bhilai, Bokaro Durgapur, Rourkela, Burnpur, The alloy Steel plant and the Salem Steel plant.
Sail Share Price Target/prediction 2023,2024,2025,2030 | Sail Share Price Target/prediction 2025
Before going further, we will see the price history of Sail Share.
22 Years Price History Of Sail | Sail stock price history
The table given below shows the price history of sail share for 22 years.
How to analyze the price history of sail share?,
Love To Read-CMS info system share target 2022
Each rows of the table shows the one year performance of sail share. It shows you about open, close. 52 week high, 52 week low And. return percentage in that particular year.
You can analyze the price history of sail stock in detail by using this table.
Sail Share Price Target/prediction 2023,2024,2025,2030 | Sail Share Price Target/prediction 2025 |
| Date | Open | Close | 52 Week High | 52 week Low | Return |
| 01 Jan 2000 | 12.25 | 6.40 | 15.9 | 4.75 | -43.36% |
| 01 Jan 2001 | 6.30 | 4.85 | 10.05 | 3.95 | -24.22% |
| 01 Jan 2002 | 4.75 | 10.25 | 13.20 | 4.60 | 111.34% |
| 01 Jan 2003 | 10.30 | 51.10 | 61.75 | 8.65 | 398.54% |
| 01 Jan 2004 | 51.40 | 62.70 | 65.40 | 20.50 | 22.70% |
| 01 Jan 2005 | 63.50 | 54.10 | 70.35 | 47.05 | 13.72 |
| 01 Jan 2006 | 54.30 | 89.05 | 96.20 | 49.55 | 64.60% |
| 01 Jan 2007 | 89.50 | 284.55 | 293 | 82.45 | 219.54% |
| 01 Jan 2008 | 284.70 | 77.50 | 290.40 | 55.25 | -72.76% |
| 01 Jan 2009 | 78.00 | 241.70 | 243.80 | 69.50 | 211.87% |
| 01 Jan 2010 | 240.70 | 166.00 | 267.00 | 166.00 | 24.49% |
| 01 Jan 2011 | 183.50 | 81.5 | 189.70 | 73.20 | -55.34% |
| 01 Jan 2012 | 81.90 | 90.65 | 115.90 | 75.75 | 11.23% |
| 01 Jan 2013 | 91.25 | 72.45 | 101.75 | 37.60 | -20.08% |
| 01 Jan 2014 | 72.60 | 82.55 | 112.95 | 54.05 | 13.94% |
| 01 Jan 2015 | 82.55 | 48.35 | 84.25 | 43.25 | -41.43% |
| 01 Jan 2016 | 48.50 | 49.30 | 56.10 | 33.50 | 1.96% |
| 01 Jan 2017 | 49.50 | 92.15 | 93.75 | 48.85 | 86.92% |
| 01 Jan 2018 | 92.60 | 56.35 | 101.45 | 49.00 | -38.85% |
| 01 Jan 2019 | 56.70 | 42.90 | 60.20 | 29.55 | -23.87% |
| 01 Jan 2020 | 43.15 | 74.10 | 74.70 | 20.15 | 72.73% |
| 01 Jan 2021 | 73.95 | 107.30 | 151.30 | 55.30 | 44.67% |
| 01 Jan 2022 | 107.70 | 70.05 | 113.65 | 63.60 | -34.65% |
Analysis of sail Share price history
Sail share has touched its all time high in the year of 2008. It was the year of severe financial crisis. In the year 2008, sail stock fell nearly 73%.
The stock could not touch the high of 2008 again.
In the last 22 years, the stock has its lowest price in year 2001. When it was trading at 3.95 rupees.
The stock has witnessed a lot of bumps and dumps.
We all, Already know that The year of 2020 and 2021 was the year of coronavirus. In this year, the stock market fall drastically.
Sale touched its 52 week low and traded at ₹20 But in the year of 2021, it broken the last 10 year record of all time high, and it touched the high of 151.30 rupees.
From the low of ₹20 in 2020 the stock grown by nearly eight folds in the year 2021.
Financial Overview Of Sail
Sail Share Price Target/prediction 2023,2024,2025,2030 | Sail Share Price Target/prediction 2025 |
| Market cap | 36658 CR |
| Number of share | 413.05 CR |
| Current market price | 88 |
| 52 Week High | 93.90 |
| 52 Week Low | 63.60 |
| P/E | 18.6 |
| Industry P/E | 11.6 |
| EPS | 04.61 |
| P/B | 0.66 |
| ROE | 25.16% |
| ROCE | 23.57% |
| debt-to-equity | 0.25 |
| Promoters holding | 65% |
| Dividend Yield | 9.56% |
Market cap of 28,088 crore, The financial overview looks great. Company is available at very bargain price. It is available at 0.59 times its book value. It means, You need to pay only 0.59 paisa to buy one rupee note.
What a bargain price the sail is offering before the investor!
Government of India is the promoter, holding 65% of its stake in sail.
The company’s 52 week high is 146 and the 52 week low is 63 in the year of 2022.
It is available almost half of its high. That looks good.
Its earning per share EPS looks great. That is 29 per share. It means, Company earns 29 rupees for a share trading in the market near about 70.
Yeah, better.
Let’s analyze its financial statement one by one, so that we could, Analyze the stock in much more detail.
Further we will discuss why the share price of metal sector is falling drastically and have reached to almost their 52 week low.
Analysis Of Income Statement Of Sail Share
Sail Share Price Target/prediction 2023,2024,2025,2030
This is the annual profit and loss report of sail. At the top most of the image there is a sale data. Sales or revenue from operation from 2013 to 2017 is almost flat. So it reflects in the prices of stock.
In this period the share price of SAIL was in between 63 to 61.
Because no investor see a good opportunity to buy the stock.
As the company started to increase the debt from 2015. The interest costs for the company rises hence profit decreases.
The stock performed very well in the bull run of 2021, It was almost all the stock listed in NSE has performed well.
Therefore it is hard to differentiate the sail growth as company improvement.
Because almost all the company has grown better in the year of 2021.
As soon as the bull run has stopped, the stock returned to its real value.
You can see in above picture that the average three-year sales growth is 16%. It shows that, Sales of the stock has grown by 16% year on year On an average basis.
But as soon, We go for long term that is, for five years Or 10 years, The sales is growing with 19% and 10% respectively on average.
Here we can conclude that, For long term perspective the stock is not to best suited, Because long term sales growth is not for making investor supper rich.
Company has operating profit margin of 30% for 3 consecutive year on an average. If we look for long term perspective the company has generated 18% of operating profit margin for 9 years period.
Greater the operating profit margin better the company for long term perspective.
Company has generated negative net profit or loss for three consecutive years 2016,2017,2018.
Company has shown a good EBITDA margin of 30% ,114%,16%.for Three years, Five years, and Nine years respectively, But the Profit has disappeared and generated a net loss.
We also observe bumps and dumps in EBITDA margin and net profit.
We also observe a very low rate of growth in share price. For nine year period, The share price of the company has grown with the annual rate of 5% year on year.
Company experience 45 to 50% of its sales on a raw material cost where is if we observe the raw material cost of Tata Steel, it spends only 35 to 40% of it’s sales on raw material.
As SAIL, spend more on raw material cost hence it’s gross profit margin is low in comparison to Tata Steel.
On an average, SAIL has gross profit margin of 55% from last 10 years, where as Tata Steel has gross profit margin of 60% from last 10 years.
We do not observe a greater difference of gross profit margin in both companies.
Company has operational profit margin of 10 to 15%, from last 10 years.
You may observe that Tata Steel also has the same operational profit margin for last 10 years.
On an average, SAIL has paid 32% to 35% of its operating profit on interest expense.
This number is quite big. 30% of operating profit is eaten up by the interest expense.
Sometimes company earn nothing but they have to pay the interest, this create extra burden on equity of the company.
Depreciation is another item of expense SAIL has the history of spending 9% on an average from last 10 years on depreciation.
Where is it’s peer Tata Steel spend 8% of it’s gross profit on depreciation.
Since both companies are involve in capital intensive business then its okay.
Consider this number as low as possible for long term competitive advantage.
Everything looks good, but as we see the sales to net profit ratio or percentage we get nothing.
Sail is failing to Convert its sale into net profit. The sales to net profit ratio is only of two percent on average of last 10 years.
It means if company sales a product of worth hundred rupees for a period of one year, it create its net profit of 2 rupees in that particular year.
Balance sheet Analysis of Sail
Let’s start balance sheet analysis with equity share capital.
It shows that the company is not racing fund by issuing new shares.
Therefore share capital growth shows 0% growth.
Reserve and surplus- The company has grown its reserve and surplus by 4% from 2013 to 2022.
And as you can see that the maximum growth of 21% has been seen in the year of 2022 and company has grown with -9% year on year in the year of 2016 and 2017.
Since Steel business is cyclic therefore which type of activity is general in almost all the Steel company.
Borrowing- You may observe that debt of the company was increasing with a good pace. But in the last two years, company has paid its almost 80% of debt. At present there is only 13678 crores of debt burden are on the company.
You may conclude that again, it’s a good sign for a healthy sign for long term advantage. Because the company did not need to pay interest expenses.
Now let’s talk about asset one by one.
Fixed Assets- company has an fixed asset of 18,384 crore in 2013 that increased and become 73,677 crore. It is almost 4 times increase in fixed asset in last 10 years. And it is necessary to increase the company fixed asset because the company is in capital intensive business.
Investment- Company is growing its investment with 9 to 10% yoy.
Why analyzing the balance sheet of sail I came to a very critical point.
When I saw the capital work in progress Trend I got shocked.
Company has decreased its capital work in progress with the rate of approximately – 19% yoy from last 9 years.
The same case is applying with working capital. SAIL is decreasing its working capital on regular basis and now it has negative working capital of 13,562 crore.
This is the major issue a company have in its life because if the company won’t have working capital how will it function its day today business.
Debt to Equity Ratio – Generally debt to equity ratio tells that how much company owes as debts in comparison to its equity. And it is calculated by dividing date to equity. If the ratio is more than 1:1. it is considered that company is in highly competitive business or it is in high capital intensive business. Because it needs more capital to function it’s day to day business and company funding its capital by debt.
Cash flow Statement Of Sail-
Sail Share Price Target/prediction 2023,2024,2025,2030 | Sail Share Price Target/prediction 2025 |
Company is very consistent in having its cash flow in a negative from last 10 years excluding two or three years.
This shows, the company will have negative free cash flow for 2013 to 2022.
You may observed that the company is investing money regularly. But do you know what is interesting, the company is investing more and more money for purchasing of fixed asset. Because the company is in the capital intensive business where large capital is required to purchase machines. And these machines became obsolete after use for some period and then need to be replaced.
This process goes on continuously and investor never Makes money.
The last line of the cash flow statement is cash from financing activity.
In this line item company is doing great things because in last 2 years company has paid almost 38,000 of its debt.
If we sum of cash from operating activity investing activity and financing activity we receive net cash flow in the company or out of the company.
Net cash flow of sale we came to know that the company is having negative gas flow in last 10 years.
There are some exception when company shoes positive cash flow like in the year 2020 and 2021.
Share Holding Pattern of Sail-
Up to the year of 2020 the promoters hold 75% of its state in sail.
But after 2021 the 10% stake and now holds only 65% of the company.
If we talk about the latest data of June 2022 foreign investor holds 4.22% and domestic investor holds 8.79% and public holds 21.91% of the stake.
Sail Share Price Target/prediction 2022,2023,2024,2025,2030 | Sail Share Price Target/prediction 2025 |
On July 2022 Centrum broking released buy call on Steel authority of India.
That time, SAIL, was trading at 72 rupees and 63 to 65 rupees.
Centrum broking has given its target price of 122.
It has said that the time period to touch the 122 level for St authority of India is one year.
But, according to us this target is much more bigger, and it is only expectation not the reality.
Because there may be some issues due to which the stock is falling.
Government has came with new tax rule that has also affected the metal sector. And almost all the metal sector companies are in negative trends.
Bing more conservative, Maya shares gives SAIL share price target for 2022 is 100.
Sail Share Price Target/prediction 2022,2023,2024,2025,2030
Sail Share Price Target/prediction 2023
If government comes with some improvement in tax rules regarding import and export.
The company may shows a good breakout. And it’s share price mein further touch the 110 level.
Sail Share Price Target/prediction 2024
We already know that India is in the making phase.
There are more possibility of infrastructure development in our country and metal sector will be directly involve in the growth story of India.
This possibility will increase the profitability of the companies involve in producing metals or steel.
If the profitability will increase it will further increase the share price of the company.
The company made us $150 level of its near term high in the year of 2024 to 2025.
Sail Share Price Target/prediction 2025
Since the company is paying its debt, it’s bottom line will improve and company will be able to show more profit.
Because it need to pay less in interest expense.
This will further improve the cash position of the company and might show healthy cash flow.
Investor will be interested and the share price will move further.
It may touch the 170 level in upcoming years of 2025.
Sail Share Price Target/prediction 2030
There is only uncertainty in the market is prediction of market.
No one can predict even the next day share price of any stocks or index for a given day.
But by looking on its financial statement we make conclude that in water range the price may trade.
But there may be some issues with companies in future and they won’t be as profitable as they are now.
No one knows the future therefore if everything looks good the share price make touch the level of 250 in 2030.
The world is very dynamic, And changing day by day.
We will try our best to update you on yearly basis. If the circumstances of the company changes, we will try your best to inform the investor by our article or video.
Conclusion- let’s come to the conclusion part, since it’s a government company then there is a very less chances of defaulting.
Company shoes are strong balance sheet but having some issues like working capital and capital working progress.
And I think it’s a major issue to function day to day operations.
We we have observe that in a spite of having a good revenue the company is earning power is very low.
And therefore revenue to net profit is in very measurable condition.
There are also problems with cash flow.
In spite of all these things company is available at fair valuation.
The company is trading at only 0.59 times its book value.
I think it’s a good bargain price. But according to my view just consider for short term and enjoy the swing.
But I would like to state that please ask your financial advisor before investing in any stock.
It’s not stock by recommendation, this content is meant only for your educational purpose.
Sail Share Price Target/prediction 2022,2023,2024,2025,2030 | Sail Share Price Target/prediction 2025 |
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