SAIL stocks rose over 80 per cent in about a month and a half due to strong earnings expectations and better outlook in the March quarter.
The Steel Authority of India Limited (SAIL), a steel making state-run company in the Corona era, has given huge profits to investors. On Tuesday, SAIL crossed the Rs 50,000 crore market cap in stocks. Stocks climbed over 80 per cent in about a month and a half due to strong earnings expectations and better outlook in the March quarter. Investors have got huge returns in stocks fast. In the stock, the government company has been included in the list of 100 most valuable companies of the country.
SAIL stock reached a new 52-week high of Rs 135.60 in Tuesday’s trade. The stock market rose sharply to Rs 55,529 crore. The company rose to 78th position in the overall market cap ranking due to the market boom.
Company business
SAIL is one of the major steel producers in India, with 5 large integrated steel plants, Bhilai Steel Plant, Rourkela Steel Plant, Durgapur Steel Plant, Bokaro Steel Plant and IISCO. These plants are in the four eastern states of the country – Chhattisgarh, Odisha, West Bengal and Jharkhand.
Apart from this, SAIL also has 3 special steel plants – Salem Steel Plant, Alloy Steel Plant and Visvesvaraya Iron and Steel Plant and Ferro Alloy Plant at Chandrapur.
Consolidated net profit of SAIL stood at Rs 406 crore in the first nine months of the financial year 2020-21, from April to December. The company had a loss of Rs 704 crore in the same period in the last financial year.
Share increased by more than 80 percent in 6 weeks
SAIL shares have risen well on hopes of better outlook and strong earnings. The stock has risen by 85 per cent in the last 6 weeks. During this period, the Sensex has recorded a decline of 2.6 percent. The stock has been trading at the highest level since July 2011.
Investors who would have invested Rs 1 lakh in it a month and a half ago, their investment would have increased to Rs 1.85 lakh now.
