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SAIL share price target raised to ₹200 by Emkay on sharp earnings recovery potentialThe brokerage has raised its price target by 14% to ₹200 from ₹175 earlier, citing attractive valuations, near-term operational levers, and supportive pricing trends.By Meghna Sen   |  Nigel D'Souza  February 25, 2026, 7:38:55 AM IST (Published)2 Min ReadShares of Steel Authority of India Ltd. (SAIL) are expected to remain in focus on Wednesday, February 25, after Emkay Global reiterated its 'Buy' rating on the stock.

The brokerage has raised its price target by 14% to ₹200 from ₹175 earlier, citing attractive valuations, near-term operational levers, and supportive pricing trends.

Emkay said ongoing inventory liquidation, an improving product mix, and gains from coal blending efficiencies should help stabilise margins, while firmer domestic steel prices are expected to support profitability in the near term.

The stock currently trades at 1.1x price-to-book, compared with its long-term average of 0.7x and the sector average of 2.8x, whose long-term mean stands at 1.6x.

According to the brokerage, continued inventory normalisation is aiding volume growth, rebar prices have rebounded meaningfully, and improving cash flows should keep net debt under control.

From a medium- to long-term perspective, SAIL plans to structurally reduce the share of semis over the next two years to enhance its product mix.

It also expects to improve coking coal consumption efficiency to 0.9x of crude steel by FY30, compared with 1x currently.

The company has outlined a 4 mt expansion at its IISCO plant, which will take total capacity to 25.6 mt by FY30, entailing capital expenditure of ₹36,000 crore.

Emkay expects a sharp earnings recovery, projecting EBITDA per tonne to rise to ₹7,000-7,500 over the next two quarters, compared with ₹4,500 per tonne in Q3.

The improvement is likely to be driven by inventory unwind and better realisations, with quarter-to-date averages up 11% for flat products and 17% for long products versus Q3 levels.

This may be partly offset by an 18% quarter-on-quarter increase in coking coal costs.

The brokerage believes stronger cash flow generation will accelerate deleveraging in FY26.

Over the medium term, a better product mix, including the Durgapur mill by FY28, improved coal blending, and the 4 mt IISCO expansion are expected to help sustain EBITDA of ₹7,500-8,000 per tonne at a $350 per tonne steel-coking coal spread.

SAIL shares settled 2.16% higher at ₹160.07 on Tuesday. The stock has rallied more than 30% over the past six months.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsSAILSAIL Share Priceshare market todaySteel Authority of India SAIL