26 Aug , 2021 By : Kanchan Joshi
Rakesh Jhunjhunwala portfolio: Steel Authority of India Limited or SAIL is one of the three stocks in which Rakesh Jhunjhunwala bought fresh shares during April to June 2021 quarter. This was a big surprise for market observers as Big Bull is basically known for investing in finance, tech, retail and pharma sector stocks. After the news break of Rakesh Jhunjhunwala buying stake in SAIL, the metal stock had shown some upside movement too, but the Rakesh Jhunjhunwala stock has been under selling pressure throughout this month. In the last one month, SAIL share price has gone down near 8 per cent while in the last one week, it has slide around 8.5 per cent. However, stock market experts are of the opinion that fundamentals of the stock are still positive and it may soon start giving upside movement.
Speaking on the fundamentals in regard to this Rakesh Jhunjhunwala portfolio stock; Arijit Malakar, Head of Research at Ashika Stock Broking said, "SAIL continues to reap the benefits of higher steel prices as it recorded its highest ever quarterly EBITDA of Rs6,530 crore increased by 7 per cent QoQ, despite volumes declining by 24 per cent QoQ. Company is using the incremental earnings to deleverage its balance sheet which will augur well for its future earnings growth. The company is working on finalizing the new leg of expansion to increase its total capacity to 50 million tonne, which will support the next leg of growth. Though, recent steel price correction could moderate its margin in coming quarter but it would not persist going ahead."
Advising investors to buy SAIL at current levels; Ravi Singhal, Vice Chairman at GCL Securities said, "SAIL stock has strong support at Rs111. Those who have this stock in their portfolio are advised to hold the counter maintain stop loss at Rs111. However, if someone wants to add SAIL in one's portfolio, one can buy the counter at current price maintaining stop loss at Rs111 for the medium-term target of Rs180 to Rs200."
Rakesh Jhunjhunwala net worth in SAIL
As per the shareholding pattern of this steel manufacturer company for recently ended June quarter, Big Bull bought 5.75 crore shares of the company, which is around 1.39 per cent of the net company shares.
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