The stock’s current price level is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum. This performance contrasts with the broader market, where the Sensex, despite a volatile session, remains relatively stable and is trading close to its 52-week high of 85,290.06 points, currently at 84,673.02 (-0.33%). The Sensex is also positioned above its 50-day and 200-day moving averages, reflecting a more positive trend in the benchmark index compared to Shyam Century Ferrous.
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Over the past year, Shyam Century Ferrous has underperformed significantly, with a total return of -60.38%, while the Sensex has recorded a positive return of 9.48% over the same period. The stock’s 52-week high was Rs.15.94, highlighting the extent of the decline to the current low. This underperformance extends beyond the last year, as the stock has consistently lagged behind the BSE500 benchmark in each of the previous three annual periods.
Financially, the company’s long-term growth metrics reveal subdued trends. Net sales have shown a negative annual growth rate of -5.57% over the last five years, while operating profit has reflected a more pronounced contraction at -211.47% during the same timeframe. The latest quarterly results indicate net sales at Rs.7.23 crores, which is the lowest recorded in recent quarters. Additionally, the company has reported negative results for three consecutive quarters, with the latest six-month PAT standing at a loss of Rs.3.23 crores, reflecting a decline of -63.27% compared to previous periods.
Non-operating income has accounted for a substantial portion of profit before tax (PBT), standing at 453.85%, which suggests that core business profitability remains under pressure. The company’s EBITDA is negative, which adds to the risk profile of the stock when compared to its historical valuation averages.
Promoter activity also signals caution, as promoters have reduced their stake by 0.62% in the previous quarter, now holding 49.56% of the company’s equity. This reduction may be interpreted as a sign of diminished confidence in the company’s near-term prospects.
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Despite the challenges faced by Shyam Century Ferrous, the company maintains a low average debt-to-equity ratio, recorded at zero, which indicates limited reliance on debt financing. This factor may provide some financial stability amid the ongoing pressures on profitability and sales.
In summary, Shyam Century Ferrous has experienced a marked decline in its stock price, culminating in a fresh 52-week low of Rs.5.6. The stock’s performance over the past year and longer term has been considerably weaker than the broader market benchmarks. Key financial indicators reflect contraction in sales and profitability, alongside negative earnings and reduced promoter holdings. Meanwhile, the broader market environment, as represented by the Sensex, remains comparatively resilient, trading near its yearly highs and supported by bullish moving averages.
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