SAIL was listed on the NSE on July 6, 1995. In the last five years, its stock has given a massive return of around 350%. Will SAIL continue to provide such great returns in the future as well? Let’s explore SAIL’s growth potential and the SAIL share price target 2025 to 2050 in this article.
About SAIL
SAIL (Steel Authority of India Limited) is India’s government-owned steelmaking company under Ministry of Steel. It was founded in 1954 and is one of the largest steel producers in the country. SAIL operates several steel plants across India, providing steel to industries such as construction, railways, and defence.
SAIL Business Model
- Integrated Steel Production Business: SAIL operates a fully integrated business model, which means it handles every stage of steel production, including mining of raw materials like iron ore and coal to manufacturing and marketing finished steel products. The company owns and manages several captive mines, ensuring a regular and cost-effective supply of raw materials.
- Diversified Product Portfolio and Distribution: SAIL manufactures a wide range of steel products, including flat products (like hot-rolled and cold-rolled coils), long products (like TMT bars, wire rods, and structural sections), and special steels for critical sectors. It serves industries such as construction, railways, defence, and automobiles.
SAIL Fundamental Analysis
| Stock Name | Steel Authority of India Ltd. |
|---|---|
| NSE Symbol | SAIL |
| Market Cap | ₹ 54,386 Cr. |
| 52W High | ₹ 159 |
| 52W Low | ₹ 99.2 |
| Stock P/E | 20.9 |
| Book Value | ₹ 143 |
| Dividend Yield | 1.52 % |
| ROCE | 6.72 % |
| ROE | 4.48 % |
| Face Value | ₹ 10.0 |
| Industry PE | 22.7 |
| Price to book value | 0.92 |
| Debt to equity | 0.63 |
| PEG Ratio | -58.1 |
| Quick ratio | 0.28 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 65.00% | 65.00% | 65.00% |
| FIIs | 4.69% | 3.18% | 3.21% |
| DIIs | 12.40% | 15.86% | 15.75% |
| Government | 0.00% | 0.00% | 0.00% |
| Public | 17.91% | 15.96% | 16.05% |
| No. of Shareholders | 15,21,988 | 16,43,073 | 20,46,326 |
Key Factors Driving SAIL Future Growth
- Government Focus on Infrastructure Development: The Indian government has allocated ₹11.11 lakh crore for infrastructure development in the Union Budget 2024-25. Major investments include railways, roads, defence, and housing. Because steel is a key component in infrastructure, increased capital spending is expected to directly boost SAIL products’ demand.
- Make in India and Atmanirbhar Bharat Push: India’s Atmanirbhar Bharat and Make in India initiatives aim to transform the country into a global manufacturing hub. The National Steel Policy 2017 sets a target of 300 million tonnes (MT) of annual steel production by 2030-31, up from around 136 MT in FY24. As a government-owned Maharatna PSU, SAIL will benefit from increased demand and production of steel.
- Booming Demand from Automobile and Construction Sectors: India’s construction sector contributes nearly 9% to the GDP and is projected to grow at a CAGR of ~6.2% till 2030, while the automobile industry is targeting a $300 billion valuation by 2026. Both sectors are major steel consumers. SAIL’s diverse product portfolio, which includes long and flat products, TMT bars, plates, and CR coils, makes it a top supplier to these industries.
- Ongoing Modernization and Capacity Expansion: SAIL has invested over ₹90,000 crore in the modernization and expansion of its integrated steel plants in the last decade. By 2030, the company aims to increase capacity from ~19.5 MTPA to ~35 MTPA, improving cost efficiency and product mix to better meet future demands.
- Policy Support and Tariff Protection: To protect domestic producers, India imposed antidumping and countervailing duties on certain steel imports. These policies, along with the Production Linked Incentive (PLI) scheme for speciality steel worth ₹6,322 crore, create a favourable environment for SAIL to expand its speciality product segment and reduce competition from cheaper imports.
Pros of SAIL
- Low P/B Ratio (Undervalued Stock): SAIL’s stock is trading at a low Price to Book Value (P/B) ratio of 0.92, which indicates that it is trading below its intrinsic value and may be undervalued.
- Low PE Ratio Compared to Peers: SAIL has a PE ratio of 20.9, which is lower than the industry average of 22.7, making it relatively undervalued and potentially a good investment opportunity.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 3.21% in March 2025 from 2.59% in December 2024, which indicates growing confidence in the SAIL future potential by the FIIs.
Cons of SAIL
- Decreasing Profits – SAIL profits are decreasing at a -41% CAGR over the last three Years.
- Decrease in DIIs Holding: Domestic Institutional Investors (DIIs) have reduced their holding to 15.75% in March 2025 from 15.86% in December 2024, indicating a decline in DIIs confidence in the company’s future growth prospects.
SAIL Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Equity Capital | 4,131 | 4,131 | 4,131 |
| Reserves | 50,616 | 52,971 | 54,775 |
| Borrowings | 30,773 | 36,323 | 36,934 |
| Other Liabilities | 45,262 | 47,598 | 40,531 |
| Total Liabilities | 130,782 | 141,022 | 136,371 |
| Fixed Assets | 73,543 | 72,426 | 73,327 |
| CWIP | 4,891 | 6,141 | 7,206 |
| Investments | 4,185 | 4,589 | 4,976 |
| Other Assets | 48,163 | 57,867 | 50,863 |
| Total Assets | 130,782 | 141,022 | 136,371 |
By the end of 2025, the SAIL share price is expected to be around ₹160 in normal conditions. In a bear market, it might be ₹140, and in a bull market, it may go up to ₹200.
| SAIL Share Price Target 2025 | Rupees (₹) |
|---|---|
| Bear Market | 140 |
| Normal Market | 160 |
| Bull Market | 200 |
In 2026, the SAIL share price is expected to be around ₹200 in a normal situation. In a bear market, it might be ₹155, and in a bull market, it may cross ₹250.
| SAIL Share Price Target 2026 | Rupees (₹) |
|---|---|
| Bear Market | 155 |
| Normal Market | 200 |
| Bull Market | 250 |
According to our analysis, the SAIL share price is expected to be around ₹230 in 2027. In a bear market, it might be ₹170, and in a bull market, it may cross ₹350.
| SAIL Share Price Target 2027 | Rupees (₹) |
|---|---|
| Bear Market | 170 |
| Normal Market | 230 |
| Bull Market | 350 |
According to our analysis, the SAIL share price may trade near ₹275 by 2028; bearish conditions could pull it down to ₹190, while a strong bull run might lift it to ₹450.
| SAIL Share Price Target 2028 | Rupees (₹) |
|---|---|
| Bear Market | 190 |
| Normal Market | 275 |
| Bull Market | 450 |
In a normal situation, the SAIL share price is projected to be approximately ₹330 in 2029. In a bear market, the value may be as low as ₹225, while in a bull market, it may rise to ₹550.
| SAIL Share Price Target 2029 | Rupees (₹) |
|---|---|
| Bear Market | 225 |
| Normal Market | 330 |
| Bull Market | 550 |
In a normal situation, the SAIL share price is projected to be approximately ₹450 in 2030. In a bear market, the value may be as low as ₹250, while in a bull market, it may rise to ₹600.
| SAIL Share Price Target 2030 | Rupees (₹) |
|---|---|
| Bear Market | 250 |
| Normal Market | 450 |
| Bull Market | 600 |
By 2035, the SAIL share price is projected to be around ₹1000 under normal conditions. In adverse markets, the price could fall to ₹500, while favorable conditions might push it up to ₹1800.
| SAIL Share Price Target 2035 | Rupees (₹) |
|---|---|
| Bear Market | 500 |
| Normal Market | 1000 |
| Bull Market | 1800 |
Under normal conditions, the SAIL share price might hit ₹2000 by 2040. A bearish trend could lower it to ₹800, whereas a bullish surge could raise it to ₹5000.
| SAIL Share Price Target 2040 | Rupees (₹) |
|---|---|
| Bear Market | 800 |
| Normal Market | 2000 |
| Bull Market | 5000 |
In 2050, the SAIL share price is expected to be around ₹10,000 in a normal situation. In a bear market, it might be ₹5000, and in a bull market, it may go up to ₹25,000.
| SAIL Share Price Target 2050 | Rupees (₹) |
|---|---|
| Bear Market | 5,000 |
| Normal Market | 10,000 |
| Bull Market | 25,000 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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