Maharatna Company SAIL Okays Interim Dividend For FY24: Buy To Be Eligible?

One of the largest steel producers in India and a Maharatna among the nation's central public sector enterprises is Steel Authority of India Limited (SAIL). SAIL produces and markets a wide variety of steel products. About 65% of SAIL's shares are owned by the Indian government, which also maintains voting power over the company as well. Together with an interim dividend for FY24, the company has released its financial results for the quarter that ended on December 31, 2023.

SAIL Dividend

"The Board of Directors in the meeting also declared an Interim-Dividend @ Rs. 1/- per equity share of Rs. 10/- each (10% of the paid up equity share capital of the Company). The record date for the purpose of payment of Interim Dividend is 20th February, 2024," said the company in a stock exchange filing.

SAIL Financials

For the December quarter, Steel Authority of India Ltd. recorded a lower consolidated net profit of Rs 422.92 crore, which is 22% less than the Rs 542.18 crore reported in the same quarter of the year before. SAIL said in an exchange filing on February 12 that its revenue from operations for the quarter was Rs 23,348.64 crore, which was 6% less than Rs 25,042.10 crore in Q3FY23. In comparison to the third quarter of the previous fiscal year, when expenses were Rs 24,825.11 crore, they were Rs 23,140.81 in the quarter under review.

According to an exchange report by the company, its total income dropped to Rs 23,492.33 crore in the third quarter of FY24 from Rs 25,140.16 crore in Q3FY23. During the quarter, 4.75 million tonnes of crude steel were produced, as opposed to 4.71 million tonnes during the same period the previous year. Compared to 4.15 million tonnes in Q3 FY23, sales volume dropped to 3.81 million tonnes.

SAIL Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said SAIL (Steel Authority of India Limited) is presently trading at Rs 119, and there are signs of profit booking from higher levels, creating a potential buying opportunity for investors. On the weekly chart, a breakout and retest of a rounding bottom pattern with significant volume suggest a robust uptrend.

The price is also supported by the 50-day Exponential Moving Average (EMA), acting as a reliable support level. This pattern indicates a short-term target price of Rs 134. Buying on dips, particularly around Rs 115, seems to be a favorable entry point, with Rs 112 identified as a crucial support level for the stock.

Additionally, SAIL exhibits a promising technical outlook, having successfully closed above its short-term, mid-term, and long-term moving averages, including the 50-day, 100-day, and 200-day EMAs. This highlights the stock's strength across various timeframes. The Relative Strength Index (RSI) currently stands at 46.6, indicating strong momentum with the potential for further price appreciation.

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.