Citigroup upgrades the rating of Steel Authority of India to Hold with a target price of INR 234. SAIL has risen 75% in the past 12 months but has underperformed TATA Steel/JSW Steel. SAIL has 100% captive iron ore but only 5% coking coal.

Based on flat steel prices rising trend in coal prices and SAIL's sluggish volume growth until FY12 Citigroup does not expect SENSEX out performance. SAIL has the advantage of a largely Indian exposure.

(Sourced from ET)