Nuvama Downgrades SAIL, Cuts Target Price by 25% on Valuation & Debt Worries

• Nuvama downgraded Steel Authority of India Ltd. (SAIL) shares from 'Hold' to 'Reduce'.
• Target price slashed by 25%, from ₹141 to ₹106, suggesting an 18% potential decline.
• Brokerage cited high valuation, weak steel prices, and anticipated 30% QoQ fall in Q3 EBITDA.
• Concerns raised over increased debt from the 4.5 MTPA IISCO expansion project and weak return ratios (RoE).
• Majority of analysts (14 out of 30) have a 'Sell' rating on SAIL shares.

Why It Matters: SAIL faces significant headwinds as Nuvama downgrades stock, citing high valuation and debt concerns.