The improving visibility on commissioning of projects is a positive development and will accrue benefits in the long term, analysts say. The delay in commissioning of projects has been one of the key factors for underperformance of the stock.

However, Daga adds that the company has indicated that modernisation and expansion is progressing steadily and it would add two blast furnaces at IISCO and Rourkela Steel Plant, thereby adding 5 MT of hot metal capacity in the coming months. On the raw material front, SAIL has signed a Memorandum of Understanding (MoU) with the Chhattisgarh government for development of iron ore mines at Eklama iron ore deposit, which would bring some respite as developing green-field mines at Rowghat were becoming a tardy process due to Maoist activities.