Shyam Metalics & Energy Ltd (SHYAMMETL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Welspun Corp

Jayaswal Neco

Aeroflex

Shyam Metalics

Usha Martin

APL Apollo Tubes

Jindal Saw

Godawari Power

Gallantt Ispat L

Ratnamani Metals

Mah. Seamless

Why is Shyam Metalics & Energy Ltd ?

Company has a Debt to Equity ratio (avg) of 0.02 times

Poor long term growth as Operating profit has grown by an annual rate -0.73% of over the last 5 years

Positive results in Jun 26

ROCE(HY) Highest at 13.21%
DEBTORS TURNOVER RATIO(HY) Highest at 20.50 times
NET SALES(Q) Highest at Rs 5,455.09 cr

With ROE of 9.3, it has a Very Expensive valuation with a 2.5 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 3.54%, its profits have risen by 21.5% ; the PEG ratio of the company is 1.2

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 4.45% over the previous quarter and collectively hold 16.72% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shyam Metalics should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shyam Metalics for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shyam Metalics

3.54%

0.13

28.30%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.06%

EBIT Growth (5y)

-0.73%

EBIT to Interest (avg)

24.75

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.43

Tax Ratio

27.38%

Dividend Payout Ratio

13.79%

Pledged Shares

Institutional Holding

16.72%

ROCE (avg)

19.48%

ROE (avg)

13.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.46

EV to EBIT

18.29

EV to EBITDA

11.44

EV to Capital Employed

2.40

EV to Sales

1.47

PEG Ratio

1.17

Dividend Yield

0.39%

ROCE (Latest)

12.09%

ROE (Latest)

9.29%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

ROCE(HY)

Highest at 13.21%

DEBTORS TURNOVER RATIO(HY)

Highest at 20.50 times

NET SALES(Q)

Highest at Rs 5,455.09 cr

PBDIT(Q)

Highest at Rs 765.29 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 14.03%

PBT LESS OI(Q)

At Rs 422.14 cr has Grown at 34.1% (vs previous 4Q average

PAT(Q)

Highest at Rs 345.07 cr.

EPS(Q)

Highest at Rs 12.40

-8What is not working for the Company

INTEREST(Q)

Highest at Rs 78.30 cr

Loading Valuation Snapshot...

Here's what is working for Shyam Metalics

Net Sales - Quarterly

Highest at Rs 5,455.09 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 765.29 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 14.03%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 422.14 cr has Grown at 34.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 314.69 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 345.07 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 345.07 cr has Grown at 29.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 267.56 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 12.40

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 20.50 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shyam Metalics

Interest - Quarterly

At Rs 78.30 cr has Grown at 52.60%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Interest - Quarterly

Highest at Rs 78.30 cr

in the last five quarters and Increased by 52.60 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)