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

APL Apollo Tubes

Usha Martin

Jayaswal Neco

Welspun Corp

Shyam Metalics

Aeroflex

Godawari Power

Ratnamani Metals

Jindal Saw

Gallantt Ispat L

Mah. Seamless

Why is Shyam Metalics & Energy Ltd ?

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

ROCE(HY) Highest at 13.21%
PBT LESS OI(Q) At Rs 427.08 cr has Grown at 59.0% (vs previous 4Q average)
DEBTORS TURNOVER RATIO(HY) Highest at 20.50 times

With ROE of 9.3, it has a Very Expensive valuation with a 2.3 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 13.79%, its profits have risen by 17.9% ; the PEG ratio of the company is 1.4

Majority shareholders : Promoters

Consistent Returns over the last 3 years

Along with generating 13.79% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

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, High Return

Absolute

Risk Adjusted

Volatility

Shyam Metalics

13.79%

0.49

27.95%

Sensex

-6.17%

-0.47

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.12%

EBIT Growth (5y)

5.85%

EBIT to Interest (avg)

26.78

Debt to EBITDA (avg)

0.54

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.43

Tax Ratio

27.50%

Dividend Payout Ratio

13.79%

Pledged Shares

Institutional Holding

12.27%

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

2.30

EV to EBIT

18.56

EV to EBITDA

11.54

EV to Capital Employed

2.25

EV to Sales

1.45

PEG Ratio

1.38

Dividend Yield

0.42%

ROCE (Latest)

12.09%

ROE (Latest)

9.29%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

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

21What is working for the Company

ROCE(HY)

Highest at 13.21%

PBT LESS OI(Q)

At Rs 427.08 cr has Grown at 59.0% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Highest at 20.50 times

NET SALES(Q)

Highest at Rs 5,240.36 cr

PBDIT(Q)

Highest at Rs 726.88 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 13.87%

PAT(Q)

Highest at Rs 319.09 cr.

EPS(Q)

Highest at Rs 11.47

-3What is not working for the Company

INTEREST(9M)

At Rs 152.45 cr has Grown at 22.37%

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Here's what is working for Shyam Metalics

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 427.08 cr has Grown at 59.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 268.65 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 5,240.36 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 5,240.36 cr has Grown at 20.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 4,361.77 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 726.88 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 13.87%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 427.08 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 319.09 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 319.09 cr has Grown at 31.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 242.48 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 11.47

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 - Nine Monthly

At Rs 152.45 cr has Grown at 22.37%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)