The shares of the leading metal-producing company gained up to 4 percent after the company commissioned a new blast furnace and launched a sinter plant at its Jamuria facility with an investment of Rs 600 crore.
With a market capitalization of Rs 24,285.87 crore, the shares of Shyam Metalics and Energy Ltd were trading at Rs 870.05 per share, increasing around 4 percent as compared to the previous closing price of Rs 838.60 per share.
Reason for rise:-
The shares of the company have seen positive momentum after Shyam Metalics and Energy Ltd commissioned a new blast furnace and launched a sinter plant at its Jamuria facility, which is valued at Rs 600 crore. The commissioned facility aims to expand production capacity to meet the growing demand for high-steel products across various industries.
Furthermore, the newly commissioned blast furnace has a capacity of 0.77 million tonnes per annum (MTPA), which significantly increases the plant’s output capabilities. This 550-cubic-meter blast furnace has three top-fired stoves, contemporary coal dust injection technology, and a dry gas cleaning facility to enhance the steelmaking process. This improvement is expected to increase steel output by 0.77 MTPA while improving profitability by around Rs. 700/MTPA.
Additionally, the company also launched a sinter plant with a capacity of 1.11 MTPA, designed to process iron ore fines into a feedstock suitable for the blast furnace. This addition is expected to increase operating efficiency and reduce production costs.
Commenting on this significant development, Mr. Brij Bhushan Agarwal, Vice Chairman & Managing Director of Shyam Metalics and Energy Limited, stated, “At Shyam Metalics, we have always strived for effective and continuous growth plans. The new blast furnace and sinter facility will improve India’s steel production capability. This development demonstrates our commitment to encouraging industrial growth and creating employment opportunities in the region.”
Financial performance:-
Looking into Shyam Metalics and Energy Ltd’s performance, revenue jumped by 8 percent from Rs 3,333 crore in Q1FY24 to Rs 3,612 crore in Q1FY25. During the same duration, net profit climbed by 38 percent from Rs 202 crore to Rs 278 crore.
Strategic Direction:-
The company’s strategic direction emphasizes disciplined capital allocation, committing up to 10% of net worth to test new ventures’ viability. Targeting an 18% IRR and ₹500 crore EBITDA within 7-8 years, it plans expansions into aluminum foil and stainless steel, focusing on integration to boost EBITDA.
Stainless Steel expansion & capex Plan:-
The company targets substantial growth in stainless steel production, supported by government infrastructure initiatives and quality material demand. With a capex commitment of ₹1,160 crore over three years, it aims to expand manufacturing facilities, expecting high demand from EPC contractors amid ongoing infrastructure projects.
The company has incurred a cumulative capex of ₹4,948 crore, with plans to invest ₹2,000 crore in both the current fiscal year and FY26. Key projects include a blast furnace, DRI plant, and production expansion. It also aims to optimize freight costs via railway rakes under the Own Your Wagon scheme.
Market outlook:-
The company projects a top line of ₹25,000 crore by FY27, with a CAGR exceeding 30%. Benefiting from 80% captive power usage at ₹2.37 per kilowatt, management remains optimistic about sustaining margins and revenue growth, despite seasonal demand and pricing fluctuations.
Company Snapshot:-
Shyam Metalics and Energy Ltd manufactures and sells ferroalloys, iron, and steel products, in addition to power generation. Its product line comprises iron pellets, sponge iron, billets, TMT bars, structural steel, wire rods, power, ferro alloys, and aluminum foil.
Written by:- Abhishek Singh
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