Shares of this Metal stock under the ‘small-cap’ category gained 8 percent on Wednesday after the company posted sales updates for the month of July 2023. In the last one month period, the company’s scrip has soared 30 percent from Rs 349.75 to the current price level.
The stocks of Shyam Metalics and Energy Limited opened their trading hour today at Rs 423.30 and currently trade at Rs 454, a gain of around 8 percent as compared to the previous closing levels of Rs 421.10 apiece. The company’s scrip witnessed an intra-day high, also recorded as the company’s fresh 52-week high, of Rs 463.20.
Such sharp movements in the company’s stock prices are observed after the company, in a filing with the Bombay Stock Exchange (BSE) dated 8th August 2023, announced sales updates for the month of July 2023.
The company, on a sequential basis, reported an increase in sales as far as the Sponge Iron, Long Steel, Steel, Pellet, and Ferro Alloys are concerned with the highest jump in sales noted with the sales of Sponge Iron from 40,599 tonnes to 55,701 tonnes indicating an increase of 37.20 percent.
YoY, the company reported an increase in sales dominated by Long Steel including TMT, Wire Rods, and Structurals from 71,295 tonnes to 1,10,275 tonnes representing an increase of 54.70 percent, followed by the sales of Aluminium Foil from 827 tonnes to 1,229 tonnes, a 48.70 percent increase.
Historically, the company has shown recent movements in the operating revenues and net profits and the same were in the opposing direction.
The operating revenues, on one hand, went up from Rs 10,393 crores during FY21-22 to Rs 12,610 crores during FY22-23, and, the net profits, on the other hand, moved down from Rs 1,724 crores to Rs 848 crores.
As per the June 2023 shareholding pattern data, the company’s Promoters hold a 88.35 percent stake, and another major chunk is held by the retail investors which represents a 7.84 percent stake.
Shyam Metalics and Energy Limited is involved in the production of metals including ferro alloys, iron & steel, and also is engaged in the process of power generation.
Written by Amit Madnani
