SAIL records best-ever Q1 production, sales volume; stock up 2%

Steel Authority of India Ltd (SAIL) has clocked record-breaking performance in the first quarter of ongoing financial year 2023-24 (Q1 FY24) in terms of production and sales, the Steel Ministry stated in a release on Wednesday.

"The production of hot metal, crude steel, and saleable steel of 5.037 million tonnes (MT), 4.667 MT, and 4.405 MT, respectively, marked the best-ever first quarter results. These figures represent a remarkable growth of 7 per cent, 8 per cent and 8 per cent, respectively, in comparison to the previous best," the ministry said.

It also mentioned that SAIL attained its highest-ever sales performance in the first quarter by achieving a sales volume of 3.9 MT, thereby marking a growth of around 24 per cent over the corresponding period last year. "This record-breaking performance by SAIL has come up in the light of its continued focus on maximizing capacity utilisation and meeting the customer demands," the steel ministry added.

Shares of SAIL today rose 1.68 per cent to hit a day high of Rs 88.70 over their previous close of Rs 87.23. At today's high price, the stock traded 5.54 per cent lower from its 52-week high of Rs 93.90, hit on January 19, 2023. Although, the scrip has gained 31.31 per cent from its one-year low price of Rs 31.31, a level seen on July 6 last year.

Technical analysts remained mixed on the counter. Support levels could be seen at 86.90.

"On the technical front, SAIL is forming 'higher highs and higher lows' on the daily charts and is currently placed above the short-term EMAs. This may trigger a fresh round of buying which may take the stock towards Rs 95-plus levels. On the oscillator's side, 14-day RSI is trading in a comfortable zone of above 50 levels, indicating the intact bullishness in the stock. We expect the counter to continue its outperformance in the coming trading days as well," said Ravi Singh, Vice-President and Head of Research at Share India.

On the other hand, AR Ramachandran from Tips2trades said, "SAIL is slightly bearish on the daily charts with strong resistance at Rs 88.50. A daily close below support of Rs 86.90 could lead to target of Rs 79 in the near term."

SAIL is one of the 'Maharatnas' of Central Public Sector Enterprises. It produces iron and steel at five integrated plants and three special steel plants.

Meanwhile, Indian equity benchmarks traded slightly lower in afternoon deals amid weak global cues. Asian markets slipped on concerns over a faltering economic recovery in China and worries of a trade conflict between Washington and Beijing.

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