SAIL share price target raised by Citi with two warnings

Shares of Steel Authority of India Ltd. (SAIL) were trading as much as 2% higher on Thursday, July 3. Global brokerage firm Citi has maintained a ‘Sell’ rating on the stock but raised its price target to ₹115 per share.However, the revised target implies a potential downside of around 16% from Wednesday’s closing price. The new target is also 28% lower than its 52-week high levels of ₹158.70.
Citi wrote in its note that it has revised its estimates upwards based on recent trends and management commentary. However, it believes that the Q1 EBITDA per tonne is likely to mark a peak and is already priced into the stock.
Citi also mentioned that steel prices could come under further pressure due to ongoing demand-supply dynamics.
At current spot EBITDA per tonne, the company is trading at an EV/EBITDA multiple of 7x. Citi expects steel prices and EBITDA per tonne to decline further.For the fourth quarter, SAIL reported a 11% year-on-year rise in its net profit at ₹1,251 crore. Revenue rose 5% to ₹29,316 crore.

At the operating level, EBITDA was flat at ₹3,483 crore, while margin stood at 11.88%.

Of the 28 analysts that have coverage on the stock, five of them have a ‘Buy’ rating, 11 say ‘Hold’, while 12 of them have a ‘Sell’ recommendation.

Shares of Steel Authority of India Ltd. are currently trading 1.70% higher at 139.82. The stock has risen nearly 25% so far in 2025.