Shares of Steel Authority of India Ltd (SAIL) edged lower in Thursday’s session after global brokerage Citi reiterated its ‘Sell’ rating on the stock while raising the SAIL share target price to Rs 115 per share. The new target implies a downside of nearly 16 per cent from Wednesday’s closing price and is 28 per cent below the stock’s 52-week high of Rs 158.70.

As of 1:00 PM, the SAIL share price was trading at Rs 137.25, down Rs 0.23 or 0.17 per cent on the National Stock Exchange (NSE). Earlier in the session, the stock had gained as much as 2 per cent before paring gains.

In its latest report, Citi revised its earnings estimates for SAIL higher, factoring in recent steel industry trends and positive management commentary. However, the brokerage cautioned that the Q1FY26 EBITDA per tonne may represent a near-term peak, which is already priced into the SAIL stock.

Citi also flagged potential downside risks for steel prices in India, citing unfavourable demand-supply dynamics that could weigh on profitability in upcoming quarters. At current spot EBITDA levels, SAIL is trading at an EV/EBITDA multiple of 7x, a valuation Citi considers stretched amid expectations of margin pressure.

In its Q4FY25 earnings, Steel Authority of India reported a net profit of Rs 1,251 crore, up 11 per cent year-on-year, while revenue rose 5 per cent to Rs 29,316 crore. Operating performance remained flat with EBITDA at Rs 3,483 crore and EBITDA margin at 11.88 per cent.

Despite today’s marginal decline, the SAIL stock has surged nearly 25 per cent in 2025, driven by strong domestic steel demand, infrastructure push, and a stable pricing environment. The stock remains a key focus in the Indian metal and steel sector, especially for investors tracking PSU stocks and large-cap steel producers.