SAIL declined by 19 per cent from Rs 84.45 to Rs 68.75 last week after reports that the company may cut output due to a slowdown in the global economy. The stock closed at a two-year low, declining by 76 per cent from its 52-week high of Rs 287.55 on December 5, 2007.
The scrip has underperformed the BSE Metal Index, tracking the movement of metal stocks, which have declined by 5.4 per cent last week.
Reports also suggest that the company will miss the 2010 deadline to complete its ambitious expansion and modernisation programme to enhance production capacity from 15 million tonnes to over 26 million tonnes with an investment of Rs 54,000 crore.
The company has posted the lowest net profit growth in the last four quarters, including the quarter ended September 2008. Net profit of the company has increased by 18 per cent to Rs 2,010 crore in the second quarter of FY09 against Rs 1,700-crore net profit during the same quarter last year. Net sales increased by 34 per cent to Rs 12,239 crore (Rs 9,163 crore) during the quarter.