Share price of this multibagger metal stock moved up by nearly 4.04% to Rs. 609.35 on BSE in the trading session of Friday, compared to its previous closing price of Rs. 585.65, after the company announced receiving a Letter of Intent (LOI).
With a market capitalisation of Rs. 16,831.6 crores, at 02:09 p.m. the shares of Shyam Metalics and Energy Limited were trading in the green at Rs. 602.25, up by nearly 2.21%.
In the last one year, the company has delivered about 118.9 percent of multibagger returns and nearly 38.5 percent of positive returns in the last six months. However, so far in 2024, it has given negative returns of around 6.04 percent.
According to recent regulatory filings with the stock exchanges, Natural Resources Energy Pvt. Ltd. (NREPL) has been awarded an LOI for Composite Licence by the Industry, Energy, Labour and Mining Department, Government of Maharashtra, for Surjagad 1 Iron Ore Block for an area of 1526 hectares in Maharashtra.
NREPL is an Associate Joint Venture Company of one of Shyam Metallic’s promoter companies i.e. Dorite Tracon Private Limited, which holds 49% economic interest.
The Directorate of Geology and Mining (DGM), Government of Maharashtra, issued a Notice Inviting Tender (NIT) dated 03, February 2023 to begin the auction process for the grant of composite licence for Surjagad 1 Iron Ore Block in Gadchiroli.
NREPL shall be designated as the ‘successful bidder’ and granted the composite licence only after meeting all the conditions, and paid a performance security of Rs. 1.5 crore through Bank Guarantee dated May 20, 2023.
In terms of financials, the revenue from operations of Shyam Metalics grew by 12.7 percent QoQ from Rs. 2,941 crore in Q2 FY23-24 to Rs. 3,315 crore in Q3 FY23-24.
However, the net profit decreased by 73.8 percent QoQ, from Rs. 482 crore in Q2 FY23-24 to Rs. 126 crore in Q3 FY23-24.
Shyam Metalics is a leading integrated metal-producing company with a focus on long steel products and ferro alloys.
The company is amongst the largest producers of ferro alloys in terms of installed capacity in India and has the ability to sell intermediate and final products across the steel value chain.
Written by Shivani Singh
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