Steel Authority of India Ltd’s (SAIL) prospects have improved after the recent increase in steel demand and realizations. The 65% surge in the share price since October shows that investors have taken notice of the improvement.
Indeed, the company has already increased its capacity to 18 million tonnes (mt) earlier in FY19 itself. This expansion did not benefit immediately considering the weak steel cycle.That said, SAIL’s September quarter metrics did not disappoint and showed the effects of unlocking of the economy.