InvestorQ : what about sail stock.
sriballav made post

what about sail stock.

Answer
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Crowny Pinto answered.
1 year ago


The price of SAIL has corrected by nearly 50% in the last year as most of the steel stocks in India have come under pressure. While in valuation terms it looks attractive at around 7 times earnings, the problem is on the steel prices. Steel companies in India are facing two problems on the steel front.

Firstly, there is cheap imports coming in from China, Japan and Korea, and Indian steel manufacturers are finding it hard to compete against these players. Secondly, global steel prices are driven by the demand for steel coming from China and that is dependent on Chinese growth. With China GDP growth coming in at a 28 year low in this quarter, there is a major concern on the profitability front. Most steel companies in India have seen a sharp fall in profits due to weak prices and higher input costs.

If you are looking at a long term perspective then you can look at steel because the downside risk is quite limited at this price. But serious upsides in steel stocks will largely depend on demand from China reviving. That could still be some time away. 


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Praful Sarang answered.
1 year ago


Steel sector is also in downtrend, it will move down till 35 till next month