SAIL downgraded to 'Hold' by MarketsMOJO due to current performance and market trends

Steel Authority Of India (SAIL) has recently been downgraded to a 'Hold' by MarketsMOJO on March 13, 2024. This decision was based on the company's current performance and market trends.
Despite a healthy long-term growth rate of 13.56% in Net Sales and 22.02% in Operating Profit, the stock is currently in a Mildly Bullish range. However, technical factors such as MACD and KST are still Bullish.

With a ROCE of 6.2, the stock is considered to have an attractive valuation with a 0.9 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. However, in the past year, while the stock has generated a return of 36.54%, its profits have fallen by -3.1%.

One positive aspect for the company is the increasing participation by institutional investors. In the previous quarter, these investors have increased their stake by 1.5% and now collectively hold 19.8% of the company. This shows that they have better capability and resources to analyze the fundamentals of companies compared to most retail investors.

In terms of performance, SAIL has been beating the market in the long term as well as the near term. In the last 1 year, the stock has generated a return of 36.54% and has outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's recent results for December 2023 have been flat. PBT LESS OI(Q) has fallen by -64.0% at Rs 342.51 crore and PAT(Q) has fallen by -58.9% at Rs 365.45 crore. The NET SALES(Q) have also been the lowest at Rs 23,348.64 crore.

Overall, while SAIL has shown potential for long-term growth and has been performing well in the market, its recent results and market trends have led to a 'Hold' rating by MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding the stock.