Dear Sir, the splendid results are due to revaluation of reserves and underlying earnings are average at best. There are some good news for the sector but results are not directly attributable to recovery. I agree there will be a short term rally. . but not sure of near term prospects
@sivaprakasamp, well I have nsot gone in details and target given i quiet reachable..if result is questionable may be profit booking will be observed from that point.thank yu for clarification. we can have clear picture tomorrow morning.
@bijoy2526, but revaluations of reserves? I am unaware of that..SAIL was permitted to sell its fines generated at its mines which was huge positive for it.that is not revaluation as far as I know I assume that SAIL must have generated profits from that source too and as per me that is not revaluation rather actual valuation.
@bijoy2526, yes Sir, if you see the quarterly results disclosure, sales from operations remain largely the same QoQ or YoY. Some 4000 Cr was taken as an inventory revaluation gain. So this iron ore was worth zero before the court order. Now it's worth 4000 Cr, so they took that to the PnL, it is actually not sale of iron ore. Anyway overall positive Sir, but this is not real cash profit for now