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Steel Authority of India Ltd logo

Steel Authority of India Ltd

NSE: SAIL BSE: 500113

160.52

(1.27)%

Sun, 08 Feb 2026, 03:24 am

Analysis

dividend

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Pros

  • Steel Authority of India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends paid are not well covered by earnings (0.1x coverage).
  • No need to calculate the sustainability of Steel Authority of India's dividends in 3 years as they are not expected to pay a notable one for India.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Steel Authority of India's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Steel Authority of India's earnings are expected to grow significantly at over 20% yearly.
  • Steel Authority of India's earnings growth is expected to exceed the India market average.
  • Steel Authority of India's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Steel Authority of India's net income is expected to increase by more than 50% in 2 years time.
  • An improvement in Steel Authority of India's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Steel Authority of India is expected to increase but not above the 50% threshold in 2 years time.
  • Steel Authority of India is expected to be loss making next year.
  • Steel Authority of India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Metals and Mining industry average.
  • Steel Authority of India's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Steel Authority of India's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • Steel Authority of India's revenue growth is positive but not above the India market average.

health

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Pros

  • Steel Authority of India is profitable, therefore cash runway is not a concern.
  • Steel Authority of India is profitable, therefore cash runway is not a concern.
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Cons

  • Steel Authority of India's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not well covered by operating cash flow (15.4%, less than 20% of total debt).
  • Debt is not covered by short term assets, assets are 0.8x debt.
  • Steel Authority of India's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (70.6% vs 119.1% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 0.8x annual interest expense, ideally 3x coverage).
  • Steel Authority of India's level of debt (119.1%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • Anil's remuneration is lower than average for companies of similar size in India.
  • Anil's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • The average tenure for the Steel Authority of India board of directors is less than 3 years, this suggests a new board.
  • The average tenure for the Steel Authority of India management team is less than 2 years, this suggests a new team.

misc

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Pros

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    Cons

    • Steel Authority of India has significant price volatility in the past 3 months.

    past

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    Pros

    • Steel Authority of India has delivered over 20% year on year earnings growth in the past 5 years.
    • Steel Authority of India has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
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    Cons

    • Steel Authority of India's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Steel Authority of India used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
    • Steel Authority of India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Steel Authority of India's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.

    value

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    Pros

    • Steel Authority of India is good value based on assets compared to the IN Metals and Mining industry average.
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    Cons

    • Steel Authority of India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Steel Authority of India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Steel Authority of India is poor value based on expected growth next year.
    • Steel Authority of India is overvalued based on earnings compared to the IN Metals and Mining industry average.
    • Steel Authority of India is overvalued based on earnings compared to the India market.
    • 500113 underperformed the Metals and Mining industry which returned -28.6% over the past year.
    • 500113 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:500113 is flat (0.3%) underperforming the Metals and Mining industry which returned 7.5% over the past month.
    • BSE:500113 is flat (0.3%) underperforming the market in India which returned 8% over the past month.

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