SAIL is indeed sailing pretty high today. From its close of Rs.64.50 yesterday, it rose to hit a new high at Rs.67.85 – a two-year high, with some 23 lakh shares changing hands.
The stock zoomed up today on expectations of further improvement in its performance, driven by higher realisations in domestic market.
Exactly 8-days ago, in our Market Gossip column, we had said the same thing.
We had said that SAIL is seen as the best placed and cheapest steel stock, considering its strategically located integrated operations, having large land bank and captive iron ore mines. SAIL is one of the largest steel making company, with a capacity of over 15 MTPA, with five integrated plants at Bhilai, Bokaro, Rourkela, Durgapur and IISCO, making Long & Flat products, as also, Special Steel, with none of Indian Steel maker matching to its product range and profiles.
We had said, “No Experts or Media is seen talking of SAIL fundamentals, or any research report having initiated buy call on SAIL, over other Steel makers. Reason is obvious. SAIL being PSU, with no more goodies doled out to Media by Govt and MF and FIIs not largely invested in SAIL, are seen blowing trumpet of other 3 steel stocks. Even in a recent interview on a TV channel yesterday, of SAIL, was seen trying to put negative forward like asking on OFS possibility.”
With sector seeing clear tailwind, SAIL is now seen in accumulation for last couple of months. Once buying by the big players get completed, probably we may see Buy report, which will be supported by the Media then – that’s exactly what is happening now!
On 23rd Sept,2020, we had given a “buy” call at Rs. 35.50 to our members in Member Zone.