Amid the subdued sentiments on the back of US-China trade war, we bring to you a blue-chip stock of India's largest steelmaker to buy for less than Rs 100 and grow your money by 25% in just 6 months.
Indian stock markets have witnessed a number jolts after the United States President Donald Trump imposed tariffs on imports to the nation which resulted in a panic among the investor classes all across Asia. Out of the massive rout in the Asian region, metal and mining stocks have seen the worst setback, be it China, Japan or India. Amid the subdued sentiments on the back of trade war, we bring to you a blue-chip steel stock of India’s largest steelmaker to buy for less than Rs 100 and grow your money by 25% in just 6 months.
Shares of state-run steel giant SAIL have already risen nearly 30% in last six-month of time to Rs 69 from a share price level of Rs 53. The research and brokerage firm HDFC Securities has given a ‘buy’ rating to the stock of SAIL (Steel Authority of India Ltd). “The stock is showing positive bias for the short term to medium term; the above “weekly chart” of “SAIL” is showing bullish evidence as per Japanese candlestick, western technicals and Elliot wave perspective,” HDFC Securities said in a research report.
HDFC Securities has given a target price of Rs 87 which implies an upside of 26% from the current market price of Rs 68.7. HDFC Securities has also recommended a stop loss of Rs 66 on the closing basis for sequential targets of Rs 80 and Rs 87 in three to six months. Among the benchmark Nifty Metal index, the stock of SAIL is the seventh best stock in terms of annual gains with a return of 14% outperforming the index which had advanced nearly 11% in the same time.
Earlier in February last month, SAIL posted a profit of Rs 43.16 crore for the quarter ended 31 December 2017 after reporting losses for as much as 10 consecutive quarters. SAIL posted a loss of Rs 794.84 crore in the third-quarter of the financial year 2016-2017. SAIL’s standalone revenue from operations during the same period under review increased to Rs 15,443.13 crore as against Rs 12,688.47 crore in the year-ago period.