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This Article is From Jun 08, 2023

Shyam Metalics - Volume Growth In Value-Added Products: ICICI Securities

Long-term prospects intact.

Shyam Metalics - Volume Growth In Value-Added Products: ICICI Securities
TMT bars manufactured by Shyam Metalics And Energy Ltd. (Source: Company website)
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Shyam Metalics & Energy Ltd
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BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

ICICI Securities Report

The volume/realisation data of Shyam Metalics and Energy Ltd. for May 2023 has reinforced our conviction on company's growth prospects. Key points:

  1. Rebar volume rose despite overall weak demand;

  2. volume ramp up of aluminium foils and LC ferrochrome may aid margins; and

  3. implied revenue for May 2023 is up 2% YoY despite sharply lower realisation across all product lines.

Going ahead, we expect earnings growth largely on the back of capacity ramp up. On profitability front, we expect month-on-month decline in May 2023 owing to lower realisation across all product lines except ferrochrome.

That said, we expect lower thermal coal and iron ore costs to aid profitability in Q2 FY24. Hence, we do not envisage a risk to our FY24E Ebitda of Rs 25.6 billion (up 73% YoY).

Click on the attachment to read the full report:

ICICI Securities Shyam Metalics Update.pdf
VIEW DOCUMENT

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

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