Nuvama Downgrades SAIL: 25% Price Target Cut on Valuation Concerns

• Nuvama downgraded SAIL to "reduce" from "hold" and cut its price target by 25% to ₹106 from ₹141.
• The revised price target implies an 18% potential downside from Wednesday's closing price.
• Nuvama cut SAIL's EBITDA estimates for FY26-28 by 13-17% due to expected lower steel prices.
• The brokerage expects SAIL's Q3 EBITDA to decline by 30% sequentially, with EBITDA per tonne down ₹1,400.
• Concerns include expensive valuations (6.9x FY27-28 EV/EBITDA), increased debt from IISCO expansion, and poor return ratio expectations (RoE 3.2% this year).

Why It Matters: Nuvama downgrades SAIL due to expensive valuations, lower steel prices, and debt concerns.