Shyam Metalics shares hit 52-week high; time to buy, sell or hold?
Shyam Metalics and Energy stock touched a yearly high of Rs 368.15, rising 5.29% against the previous close of Rs 349.65 on BSE. The metal stock has gained 26.36% in one year and risen 12% since the beginning of this year.
- Jun 27, 2023,
- Updated Jun 27, 2023 3:40 PM IST
Shares of Shyam Metalics and Energy Ltd hit a fresh 52-week high today with the metal stock rising for the second straight session on BSE. Shyam Metalics and Energy stock touched a yearly high of Rs 368.15, rising 5.29% against the previous close of Rs 349.65 on BSE. The metal stock has gained 26.36% in one year and risen 12% since the beginning of this year.
At 3:02 pm, the Shyam Metalics stock was trading 4.35% higher at Rs 364.85 on BSE. Market cap of the firm rose to Rs 9323.20 crore. The stock opened higher at Rs 351.05 on BSE. Total 1.59 lakh shares changed hands amounting to a turnover of Rs 5.76 crore on BSE.
In terms of technicals, the relative strength index (RSI) of Shyam Metalics stands at 67, indicating the stock is neither oversold nor overbought. The stock has a one-year beta of 0.8, indicating low volatility during the period. Shyam Metalics stock is trading higher than the 5 day. 20 day, 50 day, 100 day and 200 day averages.
On June 22, 2023, the stock hit a 52 week high of Rs 355.95 after the firm announced the commissioning of production capacities at their manufacturing facility at Jamuria, West Bengal.
Abhijeet from Tips2trades said, "Shyam Metalics is bullish but also overbought on the daily charts with next resistance at Rs 382. A daily close below the support of Rs 347 could trigger a fall till Rs 313 in the near term."
Gaurav Bissa, VP, InCred Equities said , "Shyam Metalics started its journey post listing with formation of lower high, which is a characteristic of a downtrend. The stock witnessed one year consolidation during which RSI was seen making base around 35 which restricted the fall in stock prices and once RSI consistently moved above 40, the price witnessed fresh push. The stock recently made a fresh swing high on the weekly charts and gave a breakout from descending channel pattern on back of strong volumes at 335 levels. Since then, it was seen gaining strength along with follow-up buying which kept pushing the stock higher. The next resistance is seen at Rs 385 level hich if sustained can lead to a move to Rs 425 level. Fresh entry is advised on a decline towards Rs 335-340 zone, which will improve risk reward considerably for the medium term horizon."
SBI Securities is bullish on the stock with a target of Rs 535.
“The company is the sixth-largest integrated domestic steel producer, 4th largest sponge iron player, largest ferro alloys producer and leading player in terms of pellet capacity with combined FY23 intermediate and finished steel production capacity of 12.73 mn tonnes. The company sources 74% of its power requirement captively with an aggregate installed capacity of 267 MW. Here’s a look at the triggers for the likely rally according to the brokerage.
1. Brownfield expansion in the existing facility of 12.73mnt to 14.45 mnt by 2025 and greenfield expansion for coated sheets.
2. FY23-FY25E Sales/EBITDA/PAT CAGR of 30.0%/40.4%/40.8% to Rs 213 bn/Rs 29 bn/Rs 17 bn.
3. The stock is trading at FY24E/FY25E EV/EBITDA of 4.3x/3.3x
Shyam Metalics logged a 39.38% decline in consolidated profit to Rs 261.18 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. The firm logged a 18.36% rise in revenue to Rs 3,380 crore in the March 2023 quarter against Rs 2,856 crore in the March 2022 quarter. EBITDA slipped 37.65% to Rs 413 crore in Q4 against Rs 663 crore in the March quarter of 2022.
On an annual basis, net profit fell 50.27% to Rs 857.60 crore for the fiscal ended March 2023 against Rs 1724.51 crore for the fiscal ended March 2022. However, revenue climbed 21.32% to Rs 12,610 crore in the March 2023 fiscal against Rs 10,393 crore for the fiscal ended March 2022. EBITDA slipped 42.84% to Rs 1485 crore in the last fiscal against Rs 2599 crore in the March 2022 fiscal.
Shyam Metalics and Energy Ltd is a metal producing company. It is engaged in the business of manufacturing and selling of ferro alloys, iron and steel, products and power generation. Its product portfolio includes iron pellets, sponge iron, billets, thermo-mechanically treated (TMT) bars, structural steel, wire rods, power, ferro alloys, and aluminum.
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Shares of Shyam Metalics and Energy Ltd hit a fresh 52-week high today with the metal stock rising for the second straight session on BSE. Shyam Metalics and Energy stock touched a yearly high of Rs 368.15, rising 5.29% against the previous close of Rs 349.65 on BSE. The metal stock has gained 26.36% in one year and risen 12% since the beginning of this year.
At 3:02 pm, the Shyam Metalics stock was trading 4.35% higher at Rs 364.85 on BSE. Market cap of the firm rose to Rs 9323.20 crore. The stock opened higher at Rs 351.05 on BSE. Total 1.59 lakh shares changed hands amounting to a turnover of Rs 5.76 crore on BSE.
In terms of technicals, the relative strength index (RSI) of Shyam Metalics stands at 67, indicating the stock is neither oversold nor overbought. The stock has a one-year beta of 0.8, indicating low volatility during the period. Shyam Metalics stock is trading higher than the 5 day. 20 day, 50 day, 100 day and 200 day averages.
On June 22, 2023, the stock hit a 52 week high of Rs 355.95 after the firm announced the commissioning of production capacities at their manufacturing facility at Jamuria, West Bengal.
Abhijeet from Tips2trades said, "Shyam Metalics is bullish but also overbought on the daily charts with next resistance at Rs 382. A daily close below the support of Rs 347 could trigger a fall till Rs 313 in the near term."
Gaurav Bissa, VP, InCred Equities said , "Shyam Metalics started its journey post listing with formation of lower high, which is a characteristic of a downtrend. The stock witnessed one year consolidation during which RSI was seen making base around 35 which restricted the fall in stock prices and once RSI consistently moved above 40, the price witnessed fresh push. The stock recently made a fresh swing high on the weekly charts and gave a breakout from descending channel pattern on back of strong volumes at 335 levels. Since then, it was seen gaining strength along with follow-up buying which kept pushing the stock higher. The next resistance is seen at Rs 385 level hich if sustained can lead to a move to Rs 425 level. Fresh entry is advised on a decline towards Rs 335-340 zone, which will improve risk reward considerably for the medium term horizon."
SBI Securities is bullish on the stock with a target of Rs 535.
“The company is the sixth-largest integrated domestic steel producer, 4th largest sponge iron player, largest ferro alloys producer and leading player in terms of pellet capacity with combined FY23 intermediate and finished steel production capacity of 12.73 mn tonnes. The company sources 74% of its power requirement captively with an aggregate installed capacity of 267 MW. Here’s a look at the triggers for the likely rally according to the brokerage.
1. Brownfield expansion in the existing facility of 12.73mnt to 14.45 mnt by 2025 and greenfield expansion for coated sheets.
2. FY23-FY25E Sales/EBITDA/PAT CAGR of 30.0%/40.4%/40.8% to Rs 213 bn/Rs 29 bn/Rs 17 bn.
3. The stock is trading at FY24E/FY25E EV/EBITDA of 4.3x/3.3x
Shyam Metalics logged a 39.38% decline in consolidated profit to Rs 261.18 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. The firm logged a 18.36% rise in revenue to Rs 3,380 crore in the March 2023 quarter against Rs 2,856 crore in the March 2022 quarter. EBITDA slipped 37.65% to Rs 413 crore in Q4 against Rs 663 crore in the March quarter of 2022.
On an annual basis, net profit fell 50.27% to Rs 857.60 crore for the fiscal ended March 2023 against Rs 1724.51 crore for the fiscal ended March 2022. However, revenue climbed 21.32% to Rs 12,610 crore in the March 2023 fiscal against Rs 10,393 crore for the fiscal ended March 2022. EBITDA slipped 42.84% to Rs 1485 crore in the last fiscal against Rs 2599 crore in the March 2022 fiscal.
Shyam Metalics and Energy Ltd is a metal producing company. It is engaged in the business of manufacturing and selling of ferro alloys, iron and steel, products and power generation. Its product portfolio includes iron pellets, sponge iron, billets, thermo-mechanically treated (TMT) bars, structural steel, wire rods, power, ferro alloys, and aluminum.
Also read: Hindustan Aeronautics announces stock split; declares final dividend of Rs 15 per share
Also read: ideaForge Technology IPO to conclude on Wednesday as exchanges reschedule Bakri Id holiday