Experts recommend buy on this Rakesh Jhunjhunwala stock despite weak Q3 results
Premium- Rakesh Jhunjhunwala portfolio: Despite rise in input cost, SAIL has reported YoY 12 per cent rise in net profit
Rakesh Jhunjhunwala portfolio: Stock market analysts have continued their faith in Steel Authority of India (SAIL) shares despite disappointing Q3 SAIL results. According to experts, SAIL share price is under retracement after making 52-week high of ₹151.30 apiece on NSE. But, this Navratna PSU metal stock has strong support at ₹90 levels and one can initiate fresh buying at ₹100 levels.
Suggesting fresh buy in this Rakesh Jhunjhunwala portfolio stock; Anuj Gupta, Vice President at IIFL Securities said, "The PSU metal stock has been under retracement after scaling to its 52-week high in May 2021 but it has strong support at ₹90 levels. Positional investors can initiate fresh buy around ₹100 for mid-term target of ₹135 to ₹140 maintaining strict stop loss at ₹88 per share levels."
Calling SAIL shares as one of the day trading stocks; Sumeet Bagadia, Executive Director at Choice Broking said, "High risk traders can initiate momentum buy in the counter at current market price for immediate short term target of ₹110 maintaining stop loss at ₹97."
On why they are bullish on SAIL share price despite weak Q3 numbers, Anuj Gupta of IIFL Securities said, "Despite SAIL management claims that it has delivered one of its best physical performances during October to December 2021 quarter, it couldn't get reflected in its Q3 FY2021-22 results. Its input cost went up due to unprecedented increase in the prices of imported coking coal. However, the company has managed to report near 12 per cent rise in its net profit on year-on-year (YoY) basis while its revenue from operations shot up near 27 per cent in same period."
Anuj Gupta said that once the coaking coal price comes down in international market, SAIL will be able to report robust quarterly numbers and hence current dip should be taken as an opportunity to accumulate or take fresh position for mid to long term.
Rakesh Jhunjhunwala shareholding in SAIL
As per Steel Authority of India's shareholding pattern for October to December 2021 quarter, Rakesh Jhunjhunwala holds 4.50 crore SAIL shares, which is 1.09 per cent of the total issue paid-up capital of the PSU company.
MINT PREMIUM See All
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!