Techn

Fa TEC

CMP

Price Per%

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Sharmila JSharmila.j+91 09320 Prakash CPrakash.p+91 93133

Bloombe

Market C

Face Val

Book Va

EPS (Rs)

Dividend

52 week

Daily Av

Listed At Equity ca

(Rs Cr)

Revenue

EBITDA

PAT

OPM %

NPM %

EPS (Rs)

no Funda Ca

airWeal

CHNO FU

P: Rs 160

rformance

1M 3M

e (4.5) (1fty (2.7)

(7

Joshi oshi@fairwealt159211

Chandra Pandeypandey@fairwea337742

erg Code Cap (Rs bn/USD

lue (Rs) lue (Rs) )

d Yield H/L (Rs) g. Vol (mn) t apital (Rs cr)

Q3FY11

Q

11,143 9

1795.7 2

1107.4 1

16.1

10

2.68

all- SAIL

lth Equ

UNDA CA

; SL: Rs

M 6M 12M

5.7) (21.4) (33.3) (14)

(37

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SAIL

D bn) 660.8 10 80.66

13.22 2.1% 258.4

0.43 NSE/B

4130.

Q3FY10 VAR %

9,697 14.9

578.4 -30.4

675.5 -33.9

26.6 (1049bps)

17.3 (740bps)

4.1 -

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ALL – ST

s 148; T

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BSE 4

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30,775.4

6,365.9

3,374.1

20.7

11

8.2

search

TEEL AU

Target: R

INVESTM

• SAIL is all songoing infplans, whiccurrently.

• SAIL is bansegment by premium seg

• SAIL is 100

could sufficesufficient en23.2mt, thusprice volatil

• India’s finisby strong dIndia will resupply.

Valuations:March quarter adverse movem12.15x and 11.The stock cameEV/EBIDTA of arget price Rs

Ranked amongSteel Authoritproducing botpower, railway

UTHORIT

s 195;

MENT THE

set to bank on frastructure deh will increas

nking on the rexpanding its

gment comman

% integrated we only 30% intnough to backs the backwarlity.

shed steel demdemand from Aemain a net ste

We expect coof FY11. With

ment of raw ma48x of our est

e off sharply byf 10.4 & 9.6 of195.

gst the top teny of India Limth basic and y, automotive

TY OF IN

Upside: 2

ESIS

the domestic cevelopment in se its crude st

robust demands value added nds 20-25% pr

with respect to tegration. The k its ambitiousd integration w

mand is expecteAutomobiles, ceel importer ov

ompany to posh high backwaaterial. At the timated FY11Ey over 25% in f FY11E and F

n public sectormited (SAIL)

special steelsand defence i

NDIA LTD

22%; H

consumption ofthe country,

teel capacity to

d witnessed fosteelmaking c

remium over se

Iron Ore. Howcompany has

s expansion plwould de-risk

ed to grow at 1consumer duraver FY11-13, a

st its higher eard integrationcurrent price

E and FY12E Ethe last quarte

FY12E. We thu

r companies inis a fully inte

s for domestindustries and

D

2

Horizon: 6

of steel primariwith its ambio 23.2mt by 2

or finished andcapacity. The emi-finished or

wever, its cokinthe Iron ore relans to take itthe company

12% CAGR oveables and Engas demand is l

ever sales numn SAIL would of Rs 160, sto

EPS of Rs 13.1er at Rs 150. Ius recommend

n India in tergrated iron anic constructio

d for sale in ex

22nd March 201

6 Months

ily driven by thitious expansio2013 from 14m

d premium stevalue added ocrude steel

ng coal reserveeserves which ts capacity upto raw materi

er FY 10-13, legineering sectolikely to outpac

mber during thbe de-risk fro

ock is trading 16 and Rs13.9It is available ‘BUY’ with th

ms of turnovend steel make

on, engineerinxport markets.

 

11

he on mt

eel or

es is to al

ed or. ce

he om at

93. at he

er, er, ng, .

Techno 

S

The258calalre

Afttargfor

Funda Call‐

SAIL TEC

e scrip has com8 level and nowlled the correceady complete

fter the compleget of Rs 343 wthis underlying

‐ SAIL 

CHNICAL

mpleted the Impw it is on the v

ctive and in thed or it will get

tion of the 2ndwithin 24montg is at around

L OUTLOO

pulsion patternverge of to come trending macompleted som

d wave the 3rd ths of time withRs 195 with th

OK

n of the Ist Wamplete the corrket it is usua

mewhere at aro

d Wave of the Lh the stop-loss he stop-loss of b

ave of the Largrrection i.e. theally called the ound in betwee

Larger Pattern of below Rs 1below Rs 148 o

ger Pattern in the 2nd Wave of consolidation

en Rs 135-140 l

will get initiat30 on the weekon the daily clo

he Ist week of Af the Larger Pain the 2nd Walevel.

ted to achieve kly closing basosing i.e. end o

April 2010 froattern which is

Wave and it seem

the target of msis and the shoof the day.

om Rs 55 to Rs s always to be ms that it has

minimum price ort term target

 

t

Techno 

BUY

ACCUM

REDUCE

SELL

NOT RA

Name

Sharmila

Prakash P

Preeti Gu

Varun Kh

Suvarna B

Tanisha J

Shakti Ra

Ankit Ma

Jitender

Nidhi Pah

K.K. Mad

Hunny Ta

Pervez Da

Name

Lokeshh G

Archana B

Rajan Bh

Funda Call‐

MULATE

E

ATED

Joshi

Pandey

upta

hanna

Binjola

Jolly

ajpal

anuja

hwa

daan

arika

anish

Gowda

Bhui

atia

‐ SAIL 

The

The

The

The

The

Des

Head

AVP

Sr. R

Rese

Rese

Rese

Rese

Rese

Rese

Rese

Head

Sr. T

Sr. T

stock's total retu

stock's total retu

stock's total retu

stock's total retu

Analyst has no r

ignation

d-Equity

P- Research & P

Research Analys

earch Analyst

earch Analyst

earch Analyst

earch Analyst

earch Analyst

earch Associate

earch Associate

d-Technical

Technical Analy

Technical Analy

Designation

Senior Manager

Trader

Dealer

Stoc

urn is expected to

urn is expected to

urn is expected to

urn is expected to

recommendation

Fundament

PMS

st

Technical

st

st

Instit

r

ck Ratings 

o exceed 15% ov

o be within 10-1

o be within 0-10

o give negative r

n on the stock un

tal Research T

Ema

sharm

prak

preet

varu

suva

tanis

shak

ankit

jiten

nidh

l Research Te

kam

hunn

perv

tutional Desk

ver the next 12 m

15% over the nex

0% over the next

returns over the

nder review

Team

ail ID

mila.joshi@fairw

kash.pandey@fai

ti.gupta@fairwe

un.khanna@fairw

arna.binjola@fai

sha.jolly@fairwe

kti.rajpal@fairwe

t.manuja@fairw

nder@fairwealth

hi.pahwa@fairwe

eam

al.madan@fairw

ny.tarika@fairw

vez.danish@fairw

Email ID

lokeshh.g@fa

archana.bhui

rajan.bhatia@

months

xt 12 months

t 12 months

next 12 months

wealth.in

irwealth.in

ealth.in

wealth.in

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wealth.in

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wealth.in

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wealth.in

fairwealth.in

@fairwealth.in

@faairwealth.in

 

Techno 

DisclaimerThis publicinformationFairwealth decision takavailable tpublishing positions in

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‐ SAIL 

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