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 Repo
Shyam Metalics and Energy Ltd.'s Q4 FY22 earnings surprised on the back on higher realisations. Gross margins increased ~ Rs 1000/tonne QoQ while Ebitda margins increased ~ Rs 1760/tonne QoQ.
Increase in imported (thermal) coal costs will impact margins from Q2 FY23 (in our view).
Nevertheless, increase in volumes – expected to increase to ~2.1 million tonne in FY23E (up 35% YoY) along with cost improvement projects (captive power, railway siding) will help support earnings.
Shyam Metalics has paid dividend of Rs 7.2/share (Rs 4.5/share interim) in FY22; ~ 10-15% of free cash flow (post sustaining capex).
Conservative capital structure with net cash of ~Rs 4.8 billion and growth capex funded through internal accruals will allow improvement of shareholder returns in our view (payout as well as % of FCF returned to shareholders).
Click on the attachment to read the full report:
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.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
