Kotak Institutional Equities has initiated a coverage on Steel Authority of India (SAIL) with a target price of Rs 170.

They have a bull case target price of Rs 240 on SAIL. Kotak believes that SAIL is well placed to benefit from strong steel prices and elevated iron ore prices as well.

The expansion projects will help SAIL to have very strong domestic volumes and that will help to have operating leverage as well for SAIL.

Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.

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(Edited by : Dipika)