Shyam Metalics and Energy is a leading integrated metal producing company based in India with a focus on long steel products and ferro alloys. It is amongst the largest producers of ferro alloys and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India
Shares of Shyam Metalics and Energy ended 0.75% lower at Rs 315.7 on BSE on June 9, 2023. The market cap of the firm rose to Rs 8,052.9 crore
ICICI Securities has maintained a 'Buy' rating on Shyam Metalics and Energy with a target price of Rs 570, suggesting an upside potential of over 80% from its Thursday's closing price
ICICI Securities is bullish on the company’s growth prospects as Rebar volume rose despite overall weak demand, volume ramp up of aluminium foils, LC ferrochrome may aid margins and implied revenue for May’23 is up 2% YoY despite sharply lower realisation across all product lines. Going ahead, it expects earnings growth largely on the back of capacity ramp up
Shyam Metalics' consolidated profit declined 39% to Rs 261 crore for the fourth quarter ended March 2023 against a net profit of Rs 430.86 crore in the corresponding quarter of the previous fiscal. It reported a 18% rise in revenue to Rs 3,380 crore in the March 2023 quarter against Rs 2,856 crore in the March 2022 quarter
The board approved the payment of an interim dividend of Rs 1.80 per equity share, being 18% of the face value of Rs 10 each, for the financial year 2023-24
There has been a decrease of 11.9% in sales volume as compared to the previous month wherein realizations have been down by 5.4% on the back of lower coal costs
ICICI Securities believes that the sales volume is likely to get a further boost as additional capacities in pellet, sponge iron and steel are commissioned by the end of June ’23. Besides, stainless steel sales volume from Mittal Corp is expected to add further revenue
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