SAIL gains 7% as company turns profitable in December quarter

Shares of Steel Authority of India (SAIL) gained 7 percent intraday Friday as company turned profitable in the quarter ended December 2017.

The company posted a net profit of Rs 43 crore in Q3FY18 against the loss of Rs 794.84 crore, in a year ago period.

Revenue of the company increased by 35.6 percent at Rs 15,323 crore against Rs 11,298 crore.

The operating profit (EBITDA) was at Rs 1,439.6 crore against EBITDA loss of Rs 42.9 crore.

The company’s margin was at 9.4 percent.

At 09:28 hrs Steel Authority of India was quoting at Rs 88.45, up Rs 2.35, or 2.73 percent on the BSE.

The latest book value of the company is Rs 87.18 per share. At current value, the price-to-book value of the company was 1.01.

The share rose 40 percent in last 6 months.

Foreign broking house Morgan Stanley has maintained underweight rating on the stock with a target price of Rs 61

According to the house, the Q3FY18 is a good quarter; sustainability is key. Better than expected realization is a key positive surprise.

EBITDA/ton is a beat which is driven by lower-than-expected per ton employee cost.moneycontrol