Meanwhile, the BSE Sensex was down 17.10 points, or 0.10%, to 17,033.35
On BSE, 8.51 lakh shares were traded in the counter as against an average daily volume of 12.09 lakh shares in the past one quarter.
The stock hit a high of Rs 191.50 and a low of Rs 186.50 so far during the day. The stock had hit a 52-week high of Rs 197.50 on 20 October 2009 and a 52-week low of Rs 55.25 on 20 November 2008.
The stock had outperformed the market over the past one month till 17 November 2009, falling 0.08% as compared to the Sensex's 1.59% fall. It had also outperformed the market in the past one quarter, gaining 16.15% as compared to the Sensex's return of 15.32%.
The large-cap state-run steel maker has an equity capital of Rs 4130.40 crore. Face value per share is Rs 10.
The current price of Rs 190.45 discounts the company's Q2 September 2009 annualised EPS of Rs 16.11, by a PE multiple of 11.82
As per reports, the Jharkhand state government has agreed to renew the mining leases to meet Steel Authority of India's (Sail) current needs. Jharkhand government has given in-principle nod to renew lease on Gudaburu mines, which contain 810 million tonnes (mt) of iron ore reserves.
There are 10 mines in the Chiria and Gua regions of Jharkhand, with Gudaburu mines being one of them. Chiria mines is estimated to be possessing nearly 2 billion tonnes of iron ore with ferrous (iron) content of over 62%.
Sail operates one of its largest steel plants at Bokaro where it is raising capacity from 5 mt to 7 mt as part of the current expansion programme. Sail has also indicated plans to set up a greenfield unit in the state with a planned steel making capacity of up to 12 mt.
In the last few years, Jharkhand government's refusal to renew the mining leases had thrown the race for Chiria wide open with global steel majors including ArcelorMittal aspiring for a slice of action in the area.
On 17 November 2009, Sail reportedly announced a cut in prices of steel used by the white goods and auto industry by Rs 500 per tonne because of softening global trend. Early this month, Sail had already brought down prices of its flat steel products by Rs 750 to Rs 1,500 a tonne.
Reports quoted steel minister Virbhadra Singh as saying recently that efforts would be made to sell a part of the government holding in Sail by March 2010. The Centre will take a final call on the proposal for divesting stake in Sail by December 2009. Government holds 85.82% stake in Sail (as at end September 2009).
Sail's net profit declined 17.20% to Rs 1663.49 crore on a 15.30% fall in total income to Rs 10575.28 crore in Q2 September 2009 over Q2 September 2008. The company had merged Bharat Refractories with itself in August 2009 and hence, the results are not comparable.
Sail is an integrated steel manufacturing company. The company's products include pig iron, steel ingots, liquid steel, alloy steel, special steel, stainless steel, ferro alloys, ERW pipes, spirally welded pipes, and calcium ammonium nitrate.