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bijoy2526
Jul 11, 2020 5:26 PM

SAIL profit increases manifold money control news Long

STEEL AUTHOR INDIANSE

Description

this maharatna company is trading less than half of its book value.
it appears it can touch the target Monday it self.
and increase further.
Comments
sivaprakasamp
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
bijoy2526
@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
@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.
sivaprakasamp
@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
bijoy2526
@sivaprakasamp, loan book growth was there market did not like that.
bijoy2526
@bijoy2526, only if crosses 37 further upside possible
sivaprakasamp
@bijoy2526, oh yes Sir, good observation on loans. Unnecessary capex at this stage... Thanks for your technical view too!
consultanilkumarg
you mean target of Rs 41?
bijoy2526
@consultanilkumarg, likely to touch upper trend line.
consultanilkumarg
@bijoy2526, sir, lots of lines and new guys like me finds it difficult
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