Axis Securities upgrades SAIL stock to ’buy’, lifts target price on improving steel spreads
Stocks to buy: Domestic brokerage firm Axis Securities in its latest note has lifted its rating on the Steel Authority of India (SAIL) to ‘buy’ from ‘hold’ and also lifted the target price to ₹130 apiece from ₹115, citing the improving steel spreads, which it believes will improve the stock’s risk-reward outlook.
According to the brokerage’s calculations, spot spreads have bottomed out and are currently up by 19% from their January 2025 lows, driven by recent HRC price hikes implemented by steel mills. This led to a 6.4% increase in ex-Mumbai HRC prices, rising from ₹47,000 per tonne in the first week of January 2025 to the current spot price of ₹50,000 per tonne in March 2025.
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