Morgan Stanley (MS) has retained an Underweight rating on Steel Authority of India Ltd (SAIL) and set a target price of ₹105, implying a potential downside of nearly 19% from the current market price of ₹130.40.
While SAIL’s Q1FY26 volumes rose 13% year-on-year to 4.6 million tonnes — beating MS’s estimate of 4.4 million tonnes — and realisations came in higher than expected (even after adjusting for rail price revisions), the brokerage flagged concerns on the cost side.
Raw material costs and “other” operating expenses were both above expectations, leading to an EBITDA that missed Morgan Stanley’s estimates by 16%.
Disclaimer: This article is based on Morgan Stanley’s brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
