New Delhi:- SAIL stock continues to decline till Saturday morning. The stock has fallen 11.89 per cent in about a week. SAIL manufactures steel. The company’s revenue has grown by 32 percent in the last quarter of the financial year 2021-2022. This will happening due to increase in sales volume and higher ASP.
The government has announced several measures to bring down steel prices in the domestic market said by brokerage firm Motilal Oswal. Because of this, the shares of steel companies have fallen. SAIL’s stock has fallen nearly 12 per cent in a week. The SAIL stock has lost 50 per cent to its 52-week high.
This will increase the profit making potential of SAIL. Because of this he has advised to buy this stock. It has said that for short term SAIL may face some problems. However, the risk-reward ratio is in its favor.
The brokerage firm has said that the financial results of SAIL are influenced by coal prices. As compared to other steel companies coal continues to a part of SAIL’s RM mix.
SAIL’s consolidated net profit declined 28 per cent in the March quarter. The reason for this was more expenses. In the last one week SAIL stock has fallen 12 percent. In one year it has broken 40 percent. It has fallen by more than 33 percent far this year.