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Business News/ Markets / Stock Markets/  Stocks To Buy: HDFC Securities sees 14-18% upside for SAIL

Stocks To Buy: HDFC Securities sees 14-18% upside for SAIL

Stocks to Buy: HDFC Securities has recommended SAIL as a positional pick with a target price of ₹145-150 indicating 14-18% upside from current levels for SAIL.

Stocks to Buy: HDFC Securities sees 14-17% upside for the SAILPremium
Stocks to Buy: HDFC Securities sees 14-17% upside for the SAIL

Stocks To Buy: Steel Authority of India Ltd (SAIL) is the Positional pick of HDFC Securities with a target price of 145-150. The stock is trading at close to 127  levels and HDFC Securities has recommended averaging level of 123. With a stop  loss for SAIL at 119, HDFC Securities recommended a target price of Rs145-150 .Time horizon for achieving target price for SAIL by HDFC Securities is 2 months.

Technical observations for SAIL stock as per HDFC Securities are that 

After the correction in the SAIL stock, it has started retracing its earlier downward move by forming a higher top, higher bottom formation, suggesting that this positive momentum is likely to continue.

The stock has also crossed above its three intermediate tops, suggesting a positive movement to continue in the stock.

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Furthermore, the point and figure chart display a bullish pattern by crossing 50% above its previous anchor column, adding to the bullish case for SAIL.

Momentum indicators, such as the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence), are also signaling bullish conditions, suggesting that the stock is likely to continue its advance in the coming weeks.

Based on the technical data presented above, we recommend buying SAIL at the current market price (CMP) of 130.85 and averaging at 123, with upside targets of 143 and 150 and a stop-loss of 119.

SAIL during the quarter ended  December 2023, had reported a 28.5% decline in its net profit. At 331.40 Crore its net profit for the quarter declined from 463.5 crore in the year ago quarter. 

The standalone 2QFY24 revenue at 23345.48 crore too had declined 7.2% year-on-year. The analysts had attributed the same to lower sales volumes. 

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Analysts at Antique Stock Broking had said that revenues were primarily impacted by lower sales volume. Steel deliveries at 3.8 MT were lower by 8.2% YoY and 20.1% sequentially. Blended steel realization at 61,274 per ton grew by 1.5% YoY but fell 1.6% sequentially as per Antique.

Steel demand in the country however remains strong led by infrastructure spending by the government. The construction activities also catch pace in February to May period post end of winters in the North.

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









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Published: 26 Feb 2024, 10:11 AM IST
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