Maharatna PSU Declares Rs 1 Final Dividend: Right Time To Buy For The Monetary Payout?

Steel Authority of India Limited (SAIL) having Maharatna status is India's largest steel manufacturer and Central Public Sector Enterprise (CPSE). SAIL, which is mostly based in eastern and central India, manufactures iron and steel at five integrated factories and three specific steel plants. The PSU stock SAIL saw its shares close 3% higher at Rs 174.20 on Tuesday, after hitting a new 52-week high of Rs 175 per share on the BSE. The company currently has a market value of Rs 71,946.21 Cr.

SAIL Dividend

"The Board of Directors have recommended the Final Dividend @ Rs.1/- per equity share of Rs.10/- each for the Financial Year 2023-24 (i.e.10% of the paid up equity share capital of the Company). The Final dividend is in addition to the interim dividend of Rs.1/- per equity share of Rs.10/- each, declared in February, 2024. The said Final dividend for FY 2023-24 will be paid within 30 days from the date of approval by the Shareholders in the ensuing Annual General Meeting, the date of which will be intimated in due course," said the PSU company in a regulatory filing.

SAIL Financials

Consolidated net profit for the state-owned company fell to Rs 1,126 crore in the quarter ended March 31, 2024, from Rs 1,159 crore in the same quarter the previous year. Net profit on a standalone basis dropped to Rs 1,011.2 crore from Rs 1,049.02 crore recorded in the same quarter of the previous year. The total revenue from operations for Q4FY23 was Rs 27,958.52 crore, a 4% drop from Rs 29,130.66 Cr in Q4FY23.

Earnings before interest, tax, depreciation, and amortization (EBITDA) totalled Rs 12,280 crore on a stand-alone basis, growing 30.9% YoY. The net profit for the entire FY24 jumped by 40% to Rs 3,067 crore compared to Rs 2,177 crore in FY23. The revenue for the entire year was Rs 1,05,378 crore, up 1% YoYr from Rs 1,04,448 crore in FY23. The company has had its best-ever sales and production results during FY 2023-2024. During FY'24, the volume of sales and production of crude steel production increased by 5.1% and 5.2%, respectively.

SAIL Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "SAIL, currently priced at Rs 171.85, has recently broken out of a rounding bottom pattern on the weekly chart. The price trend indicates robust bullish momentum, with expectations of further upward movement towards the Rs 200 and Rs 240 levels. Notably, substantial support is observed near Rs 150 on the downside."

"The Relative Strength Index (RSI) stands at 64, signalling an upward trajectory and confirming increased buying momentum. To effectively manage risk, it is advisable to set a stop-loss (SL) at Rs 150 to safeguard the investment against unexpected market reversals. A prudent strategy involves considering buying opportunities on market dips at levels of Rs 164 and Rs 157," he further recommended.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.