Global investment firm JP Morgan has upgraded its rating on state-owned steel maker SAIL to overweight from neutral earlier. The stock rallied 9.3 percent intraday on Friday.
It has set a price target for the stock at Rs 78, implying 61.5 percent potential upside from Thursday’s closing levels.
The stock was quoting at Rs 52.25, up Rs 3.95, or 8.18 percent amid high volumes on the BSE, at 11:28 hours IST. It plunged 37 percent in last one year.
The global research house upgraded the stock rating on the back of favourable risk-reward. “At 0.5x price-to-book value, the market has not been pricing in higher iron ore & volumes.”
SAIL & Tata Steel will benefit from higher steel prices, it said.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
First Published on Mar 1, 2019 11:40 am