Update shared on 28 Nov 2025
Fair value Decreased 0.37%Analysts have slightly lowered their price target for Steel Authority of India to ₹125.81, a modest decrease that reflects small adjustments in discount rates and future earnings estimates. The outlook for revenue growth and profit margins remains broadly stable.
Analyst Commentary
Recent analyst commentary on Steel Authority of India presents a nuanced perspective on the company's current outlook. Market experts continue to monitor the company’s performance and future prospects, providing insights into areas of optimism as well as caution.
Bullish Takeaways
- Bullish analysts highlight the broadly stable outlook for revenue growth. This suggests confidence in the company’s ability to capitalize on prevailing market conditions.
- Improved guidance on long-term earnings estimates is seen as a signal that execution remains robust, despite minor adjustments in discount rates.
- Positive momentum in key metrics, such as profitability and sustained annual recurring revenue growth, supports the view that Steel Authority of India is positioned to deliver solid operating results.
- Incremental increases in full-year forecasts are viewed as a positive leading indicator for valuation. This reflects management’s belief in the sustainability of current trends.
Bearish Takeaways
- Bearish analysts point to the modest reduction in price target, noting this as an indication of lingering caution surrounding potential volatility in future earnings.
- Concerns remain regarding the pace of net new profit additions. This may signal challenges in driving accelerated growth beyond recent levels.
- The small adjustments to discount rates suggest some uncertainty in the macro environment, prompting a more conservative approach to valuation.
What's in the News
- Steel Authority of India is seeking acquisitions and investments in mineral asset blocks abroad, targeting resources such as coking coal, copper, lithium, and low-silica limestone. The company is focusing on geographies including Africa, the Middle East, Latin America, and Southeast Asia, following specific directives from its parent ministry (Key Developments).
- The company has been instructed to explore partnerships and acquisitions involving both active and virgin mining assets. It is also ramping up activities at its Mozambique coal blocks and preparing capital expenditure plans to support improved mineral supply (Key Developments).
- A Board Meeting is scheduled for October 29, 2025, to review and approve the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2025 (Key Developments).
Valuation Changes
- Fair Value (Consensus Analyst Price Target): Decreased marginally from ₹126.28 to ₹125.81.
- Discount Rate: Increased slightly from 15.09% to 15.13%.
- Revenue Growth: Remained unchanged at approximately 4.25%.
- Net Profit Margin: Remained steady at around 4.66%.
- Future P/E: Declined from 14.34x to 13.87x.
Disclaimer
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