Rakesh Jhunjhunwala portfolio: Steel Authority of India (SAIL) is one of the three stocks that veteran investor Rakesh Jhunjhunwala bought between April and June 2021. Usually Rakesh Jhunjhunwala’s investments are in the stocks of finance, tech, retail and pharma sectors. But this time he also bought stake in the steel company.
SAIL shares rose after Rakesh Jhunjhunwala bought stake, but this month it was under continuous selling pressure. But now for the last two days it has come back up. On August 27, at 10.45 am, SAIL shares are trading up 2.73 per cent at Rs 118.40.
Earlier in the last one month, the shares of SAIL had lost 8 per cent. Whereas in just the last one week it had fallen by 8.5 per cent. However, market experts believed that it would return to the bullish trend, which is visible today.
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Arijit Malakar, Research Head, Ashika Stock Broking said, SAIL continues to benefit due to rising steel prices. This is the reason that in the June quarter, the company’s EBITDA increased by 7% on a quarter-on-quarter basis to Rs 6530 crore. While the volume had decreased by 24 percent during this period.
SAIL is strengthening its balance sheet with the earnings of expensive steel. The company is in the process of increasing its total capacity to 50 million tonnes. This will also support growth. Although the fall in steel prices in the last few days will reduce margins in the coming quarters, it will not last long.
Ravi Singhal, Vice Chairman, GCL Securities has advised investors to invest in SAIL at the current level. He has said that one can buy it with a stop loss of Rs 111. Whereas in the medium term, the target of SAIL is 180 to 200 rupees.
Rakesh Jhunjhunwala bought shares worth Rs 5.75 crore in SAIL in the June quarter. This was equivalent to about 1.39 per cent stake in the company.
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