Shares of this midcap company jumped around 3 percent in Wednesday’s trading session after announcing a capacity expansion in the Odisha facility. The shares have delivered a multibagger return of 124 percent in one year to its shareholders.
With a market capitalization of Rs. 17,601 crores, the shares of Shyam Metalics & Energy Ltd started Wednesday’s trading session on a higher note at Rs. 640 compared to its previous close of Rs. 619.20. During the trading session, the shares hit a high of Rs. 658.50, gaining around 3 percent and are currently trading at Rs. 633 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they are setting up a new stainless steel hot rolled coils (HRC) facility at its Odisha plant as a part of its expansion plan. The company strategically positions itself for accelerated growth and expansion in the Stainless Steel market.
Furthermore, the newly established facility, with a capacity of 0.3 Million Metric Tons Per Annum (MTPA), will focus on manufacturing 200 and 400-series stainless steel hot rolled coils. It will utilize captive raw materials like direct-reduced iron (DRI), power, and ferroalloys, ensuring a dependable and efficient supply chain. The facility will uphold stringent quality standards across all stages of production.
Additionally, the company has also applied to acquire a new 20-acre land parcel at the newly acquired Mittal Corp. which is now merged with its material wholly owned subsidiary Shyam Sel and Power Limited, dedicated to downstream products from its wire rod division.
Moreover, this expansion initiative includes plans to establish a Stainless Steel (SS) bright bars capacity of 25,000 Metric Tons Per Annum (MTPA) and an SS wires division with a capacity of 18,000 Metric Tons Per Annum (MTPA).
The project is anticipated to be operational by the middle of the fiscal year 2026-27 and the projected capital expenditure for the project is expected to range between Rs. 650 to 750 crores approximately.
Coming onto the company’s financial statements, the revenue increased by 13 percent from Rs. 2,941 crores during the September quarter to Rs. 3,315 crores in the December quarter. On a contrasting note, the net profits declined by 73 percent from Rs. 482 crores to Rs. 126 crores during the same period.
As of 9M FY24, the company incurred a capex of Rs. 4,334 crores resulting in capacity expansion, enhanced product portfolio and cost efficiencies. Further, foray into battery-grade aluminium foil, a critical component in lithium-ion cells. The capability of manufacturing battery-grade aluminium foil with thicknesses ranging from 12-micron to 20-micron.
In addition, Shyam Metalics intends to establish a new cold rolling mill project on 94 acres of land in Jamuria, West Bengal. The total capital expenditure for this endeavour is estimated at Rs. 603 crores, aimed at producing items such as GI/GL coils and PPGL.
Headquartered in Kolkata, Shyam Metalics is a leading integrated metal-producing company based in India with a focus on long steel products and ferroalloys. The company is one of the largest producers of ferroalloys in terms of installed capacity in India.
Written By Vaibhav Patil
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