Indiabulls Securities, in its latest research report on SAIL, has recommended "Buy" on the stock, citing renewal in demand and steep decline in coke prices which is used as a raw material.
According to the report, the steel demand in India is expected to grow by 2% vs decline of 15% in global demand. It expects the renewal in steel demand to help company in improving their revenues.
Another positive indicator is the steep decline in coke prices which is used as raw material in steel industry. SAIL imports around 70% of the total coke requirement and it accounts for 30% of the total cost incurred by the company. Hence, the reduction in coke prices would help the company in improving their margins. According to the report, SAIL has negotiated the coke prices with the vendors at about 60% less than the previous rates.
Thus, increase in demand and lowering of raw material cost would give dual-benefit to the company and hence, put 'Buy' ratings on the stock.
Indiabulls customers can login to the trading website or their desktop application Power Indiabulls (PIB) to read the detailed report.
According to the report, the steel demand in India is expected to grow by 2% vs decline of 15% in global demand. It expects the renewal in steel demand to help company in improving their revenues.
Another positive indicator is the steep decline in coke prices which is used as raw material in steel industry. SAIL imports around 70% of the total coke requirement and it accounts for 30% of the total cost incurred by the company. Hence, the reduction in coke prices would help the company in improving their margins. According to the report, SAIL has negotiated the coke prices with the vendors at about 60% less than the previous rates.
Thus, increase in demand and lowering of raw material cost would give dual-benefit to the company and hence, put 'Buy' ratings on the stock.
Indiabulls customers can login to the trading website or their desktop application Power Indiabulls (PIB) to read the detailed report.
Hope the expected growth comes into fruition.
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