Shyam Metalics — Multi-Fold, Multi-Faceted Growth: ICICI Securities

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 April 2023 reveals that the company has made a good start in FY24 despite price/demand headwinds, particularly in long products. Key points:Volume of metalics and semis rose as newly-commissioned facilities in December 2022/January 2023 ramped-up production; rebar volume declined 15% month-on-month to 103.4 thousand tonne owing to seasonally lower demand; and aluminium foils sales volume was down 9% month-on-month though there is an impressive ramp up YoY. Going ahead, we expect volume growth YoY to sustain as capacities ramp up. Additionally, new rebar facility of 330 kte by June 2023 end may further boost the share of rolled products. On profitability front, we expect an improvement in April-23 compared to even March-23 mainly driven by lower thermal coal cost- both domestic and imported and steadily declining iron ore prices. Going ahead, while we expect realisation to decline, lower cost is likely to result in Ebitda rate of Rs 6-6.5 billion per quarter. Hence, we do not envisage a risk to our FY24E Ebitda of Rs 29 billion (up 93% YoY)..Click on the attachment to read the full report:.Here Are The Top Investment Ideas For May 2023 Recommended By Motilal Oswal.DISCLAIMERThis 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..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Shyam Metalics — Multi-Fold, Multi-Faceted Growth: ICICI Securities

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