SAIL - Rating: Sell; Target Price: Rs40 - Centrum

- We expect revenue to increase by 13.7% YoY on the back of sales volumes of ~3.1 MT (higher by 12% YoY) and marginally better realizations (up by 1.8% QoQ).

- EBITDA is expected to be flat YoY but increase by 32% QoQ on account of better realizations. We expect EBITDA margin of 9.6%, down by 126bps as high conversion cost pressures continue to remain for SAIL.

- Adj-PAT is expected to drop by ~43% YoY to Rs4970mn on account of higher interest and depreciation costs and lower other income.

Source : Equity Bulls

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