Shyam Metalics & Energy Reports Mixed Financial Results for Q2 2024-2025

Nov 12 2024 10:35 PM IST
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Shyam Metalics & Energy, a largecap company in the steel, sponge iron, and pig iron industry, has reported a negative performance in the second quarter of fiscal year 2024-2025. However, the company's net sales have been consistently growing, while the profit after tax has decreased. Investors are advised to hold their position in the stock.

Shyam Metalics & Energy, a largecap company in the steel, sponge iron, and pig iron industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financials, Shyam Metalics has seen a negative performance in the second quarter of the fiscal year 2024-2025, with a score of -10 compared to 4 in the previous three months. However, there are some positive aspects to the company's financials.

The net sales for the quarter were the highest in the last five quarters at Rs 3,634.02 crore, and have been growing each quarter. This indicates a very positive sales trend in the near term.

On the other hand, the profit after tax (PAT) for the quarter has fallen by 22.1% compared to the average PAT of the previous four quarters. This is a cause for concern as the near term trend for PAT is negative. Additionally, the operating cash flow for the company has been falling each year for the last three years, indicating a decline in cash revenues from business operations.

The company's short term liquidity is also deteriorating, with the lowest cash and cash equivalents of Rs 34.82 crore in the last six half yearly periods. Furthermore, the non-operating income for the quarter was the highest in the last five quarters, but this increase may not be sustainable as it comes from non-business activities.

Overall, Shyam Metalics & Energy's financial performance for the quarter ending September 2024 has been mixed, with some positive and negative aspects. Investors are advised to hold their position in the stock, as recommended by MarketsMOJO.
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