Why iron and steel shares of Shyam Metalics could increase 80% in one year.

Shares of Shyam Metalics: On June 7, the stock hit a high of Rs 316.75 during the day, compared to the previous close of Rs 311.65 on BSE. The company’s market value went up to Rs 8046 crore.

Following ICICI Securities’ designation of Shyam Metalics and Energy Ltd as its top choice in the metals industry, the company’s shares are in focus. The brokerage kept its goal price for the iron and steel stock at Rs 570, which is an increase of 80% from the closing price of Rs 293.25 on BSE on June 5, 2023. The metals and mining report was released by the company on June 6. The price has gone up by 8% since then.

On June 7, the stock hit a high of Rs 316.75 during the day, which was higher than the previous close of Rs 311.65 on BSE. Later, it closed on BSE up 1.22% at Rs 315.45. Since yesterday, the stock has been going up.

The price of Shyam Metalics stock is above its 5, 20, 50, 100, and 200-day moving averages.The metal stock has gone up by 0.62 percent since the beginning of this year and 1.37 percent in the past year. The company’s market value went up to Rs 8046 crore. At Rs 311.65 when the BSE market started today, the stock was up. On BSE, a total of 0.55 lakh shares were traded, which brought in Rs 1.72 crore.

ICICI Securities said, “We are optimistic about SMEL’s future, mostly because new powers will be up and running by the end of June ’23. So far, we don’t see a threat to our FY24E EBITDA of Rs25.6bn, which is up 73% year over year. Keep BUY on SMEL and keep the same TP of Rs 570.”

In terms of technicals, Shyam Metalics’ relative strength index (RSI) is at 68.6, which means that the stock is neither oversold nor overbought. The stock’s one-year beta is 0.8, which means that it was not very volatile during that time. Shares of Shyam Metalics are trading above their 5, 20, 50, 100, and 200-day moving averages.

The brokerage said this about the Q4 earnings: “Performance was a little bit lower than expectations. EBITDA went up 86% from the previous quarter to Rs 410 crore. The amount of money that finished steel goods brought in jumped to an all-time high of 53.5%.The amount of pellet and sponge iron rose from one quarter to the next as capacities that started up in December 2022 grew.”

For the fourth quarter that ended in March 2023, Shyam Metalics saw its combined profit drop by 39.38%, from Rs 430.86 crore to Rs 261.18 crore. In the same quarter of the previous fiscal year, the company made a net profit of Rs 430.86 crore. In the March 2023 quarter, the company made Rs 3380 crore, up from Rs 2856 crore in the March 2022 quarter. This is an increase of 18.36%. EBITDA dropped by 37.65%, from Rs 663 crore in the March quarter of 2022 to Rs 413 crore in Q4.

For the fiscal year that ended in March 2023, the net profit was Rs 857.60 crore, down from Rs 1724.51 crore for the fiscal year that ended in March 2022. But revenue rose by 21.32 percent, from Rs 10,393 crore in the fiscal year that ended in March 2022 to Rs 12,610 crore in the fiscal year that finished in March 2023. In the last fiscal year, EBITDA dropped by 42.84%, from Rs 2599 crore to Rs 1485 crore.

Shyam Metalics and Energy Ltd. is a business that makes metal. Its business is making and selling ferro alloys, iron and steel goods, and generating electricity. Iron pellets, sponge iron, billets, thermo-mechanically treated (TMT) bars, structural steel, wire rods, power, ferro alloys, and aluminium are among the products it sells.



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