Shyam Metalics shares hit 52-week high as firm announces capacity expansion at Bengal unit

Shares of Shyam Metalics and Energy Ltd hit a fresh 52-week high today after the metal firm announced the commissioning of production capacities at their manufacturing facility at Jamuria, West Bengal. Shyam Metalics and Energy stock touched a yearly high of Rs 355.95 against the previous close of Rs 347.15 on BSE. The metal stock has gained 21.69% in one year and risen 5% since the beginning of this year.   

However, in the afternoon session, the stock saw some profit-booking off its 52-week high and traded in the red. At 3:06 pm, the Shyam Metalics stock fell 1.43% to Rs 343 on BSE. Market cap of the firm fell to Rs 8749 crore. The stock opened higher at Rs 348.30 on BSE. Total 0.19 lakh shares changed hands amounting to a turnover of Rs 67.92 crore on BSE.   

In terms of technicals, the relative strength index (RSI) of Shyam Metalics stands at 72.3, indicating the stock is 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 20 day, 50 day, 100 day and 200 day but lower than 5 day moving averages.   

“The capacity of the captive power plant will rise by 90 MW from 267 MW to 357 MW. The company sources 75% of its power requirement from the captive plant. The incremental addition will lead to 80% of power sourcing internally, which leads to significant cost savings,” the company said in a communication to bourses.  

The company has also boosted its sponge Iron production, commissioning an incremental capacity of 1,65,000 TPA, leading to an enhanced total capacity of 2.7 million tonne per annum. 

Shyam Metalics reported 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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