Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by strategic investments and operational efficiencies.
Basis of our Recommendation
Shyam Metalics is positioned for robust growth, supported by a strategic shift towards value-added products and significant capital investments in stainless steel and aluminium segments. Management's commitment to maintaining capital discipline while enhancing profitability through improved product mix and operational efficiencies bodes well for future performance. The company aims to remain net cash positive by FY31, leveraging strong internal accruals.
Why We Like This Stock
- Strategic pivot towards value-added products expected to enhance profitability
- Significant capital investments in high-margin segments like stainless steel and aluminium
- Commitment to capital discipline while remaining net cash positive
Things To Watch Out For
- nan
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 13,195 | 15,138 | 18,552 | 22,228 | 26,182 |
| Profit Before Tax (Cr.) | 940 | 1,241 | 1,562 | 1,868 | 2,209 |
| PBT Margin | 7.1% | 8.2% | 8.4% | 8.4% | 8.4% |
| Net Profit (Cr.) | 1,040 | 1,004 | 1,044 | 1,325 | 1,568 |
| EPS | 37.6 | 36.0 | 37.9 | 47.6 | 56.3 |
Company Overview
Show Company Profile
Shyam Metalics and Energy Limited, an integrated metal-producing company, manufactures and sells long steel products and ferro alloys in India, and internationally. The company produces long steel products, such as iron ore pellets, sponge iron, billets, thermos-mechanically treated bars, structural steel, wire rods, ferro alloys, color-coated sheets, cold-rolled coils and sheets, pig iron, and stainless-steel products. It also manufactures and sells aluminum foils for use in food packaging, pharmaceutical and cosmetic packaging, flexible packaging, electronics, and energy storage battery applications. The company sells its products under the SEL Tiger brand. In addition, it operates three manufacturing plants, which include captive power plants with an installed capacity of 227 MW, located in Odisha and West Bengal. The company exports its products to approximately 25 countries. Shyam Metalics and Energy Limited was founded in 1991 and is headquartered in Kolkata, India.