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Shares of state-owned Steel Authority of India Ltd's fell as much as 5.1 per cent to Rs 66, their biggest percentage loss since October 5.
At about 12.50 pm, the stock was quoting at Rs 66.50, still down Rs2.95 or 4.25 per cent on the BSE.
On Friday, the company reported a net profit of Rs 554 crore for the September quarter, compared with a loss of Rs 539 crore last year.
The company missed analysts’ estimates of Rs 829 crore by a huge margin, according to Refinitiv data. Total expenses rose about 13 per cent to Rs 15,950 crore.
Jefferies has cut the company’s price target to Rs 62 from Rs 69 and maintained ‘underperform’.
Volume growth remains elusive and should continue to disappoint; believe wages would have to be hiked as profits improve, which would cap margins, the brokerage said.
More than 8 million shares changed hands, compared to the 30-day moving average of about 10 million. The stock is down about 25 per cent this year as of last close.
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