SAIL share price: Dividend stock dips on record date. Buy, hold or exit?
2 min read 24 Mar 2023, 12:16 PM ISTDividend stock: SAIL share price is trading sideways in ₹80 to ₹88 range, believe stock market experts
PremiumSteel Authority of India (SAIL) shares are one of those dividend stocks on Dalal Street that has fixed record date on 24th March 2023. However, a good number of SAIL shareholders decided to exit the PSU stock on record date for interim dividend of Re 1 per share fearing further dip in the state-owned metal stock. SAIL share price today downside and went on to hit intraday low of ₹82.70 apiece on NSE, logging over 3 per cent intraday loss in early morning deals.
According to stock market experts, steel prices in the international market has peaked out and now market is expecting ease in margins of the PSU metal company. They said that even during China reopening theme, rising metal prices may not work as SAIL is expected to lose its export revenue it gained during Chinese lockdown. They said that SAIL shares are currently in range of ₹80 to ₹88 and bullish or bearish trend can be assumed on breakage of either side of the range. They advised SAIL shareholder to hold the scrip maintaining stop loss below ₹80 and wait for breakout or breakdown for fresh position.
Why SAIL share price fell today?
Speaking on reason for fall in SAIL share price, Ravi Singhal, CEO at GCL Broking said, "Metal prices including steel surged in the wake of Chinese lockdown, which resulted in improvement in margins of SAIL on its buffer reserves. The Chinese lockdown also helped SAIL to increase its export revenue where Chinese companies were unable to export due to lockdown. So, in the wake of Chinese reopening theme, rise in metal prices may not aide margins of the company as it is bound to lose export revenue in the wake of Chinese reopening theme."
Suggesting SAIL shareholders to hold the scrip, Sumeet Bagadia, Executive Director at Choice Broking said, "SAIL share price is trading in ₹80 to ₹88 range and those who have this metal stock in their portfolio are advised to hold the scrip maintaining stop loss below ₹80 apiece levels." Sumeet Bagadia said that bullish or bearish trend can be ascertained on breakage of either side of the range as the stock is range-bound in ₹80 to ₹88 range. He advised positional investors to wait for further clarity and avoid buying at support levels as the stock may witness sharp fall once it breaks ₹80 support.
Advising SAIL shareholders to exit on rise, Ravi Singhal of GCL Broking said, "SAIL and other metal stocks are fundamentally weak and my suggestion to SAIL shareholders is exit on rise as the stock may go up to ₹74 to ₹76 levels in short term."
SAIL dividend details
Informing Indian bourses about dividend payment, SAIL said, "This is in continuation of our intimation of even no. dated 10th March, 2023. The Board of Directors at its meeting held today i.e. 16th March, 2023, has inter-alia, approved the payment of Interim Dividend for the FY 2022-23 @ Rs. l/- per equity share (10% on the paid up equity share capital of the Company). The record date for the purpose of payment of Interim Dividend is 24 March, 2023."
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 taking any investment decisions.
