SHYAMMETL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | SHYAMMETL | Market Cap | 26,391 Cr. | Current Price | 945 ₹ | High / Low | 1,001 ₹ |
| Stock P/E | 47.7 | Book Value | 231 ₹ | Dividend Yield | 0.47 % | ROCE | 12.3 % |
| ROE | 8.90 % | Face Value | 10.0 ₹ | DMA 50 | 861 ₹ | DMA 200 | 850 ₹ |
| Chg in FII Hold | -0.12 % | Chg in DII Hold | 0.30 % | PAT Qtr | 151 Cr. | PAT Prev Qtr | 98.4 Cr. |
| RSI | 67.0 | MACD | 22.2 | Volume | 11,30,174 | Avg Vol 1Wk | 8,30,351 |
| Low price | 746 ₹ | High price | 1,001 ₹ | PEG Ratio | 1.99 | Debt to equity | 0.05 |
| 52w Index | 78.0 % | Qtr Profit Var | 51.9 % | EPS | 19.8 ₹ | Industry PE | 22.5 |
📊 Financials: SHYAMMETL has a market cap of ₹26,391 Cr. Quarterly PAT rose from ₹98.4 Cr. to ₹151 Cr. (51.9% growth), showing strong profitability momentum. ROE at 8.90% and ROCE at 12.3% reflect moderate efficiency. Debt-to-equity ratio of 0.05 indicates very low leverage, supporting financial stability. EPS at ₹19.8 is modest relative to valuation multiples.
💹 Valuation: Current P/E of 47.7 is more than double the industry average of 22.5, suggesting overvaluation. P/B ratio (~4.1) is elevated compared to book value ₹231. PEG ratio at 1.99 indicates growth is priced expensively. Intrinsic value appears lower than CMP ₹945, limiting near-term upside.
🏦 Business Model: SHYAMMETL operates in the metals and alloys sector, with strong exposure to steel and ferro alloys. Its competitive advantage lies in cost efficiency, integrated operations, and diversified product offerings. However, cyclical demand and commodity price volatility impact margins.
📉 Entry Zone: RSI at 67.0 suggests overbought conditions, while MACD at 22.2 indicates bullish momentum. A potential entry zone could be around ₹880–₹900 for accumulation. Long-term investors may hold, given strong fundamentals, but valuation risks remain elevated.
Positive
- 📈 Strong PAT growth (51.9%).
- 💰 Very low debt-to-equity ratio (0.05).
- ⚡ Integrated operations in steel and alloys sector.
Limitation
- ⚠️ High P/E (47.7) vs industry average (22.5).
- 📉 PEG ratio at 1.99, indicating expensive growth.
- 🔄 Moderate ROE (8.90%) and ROCE (12.3%).
Company Negative News
- 📉 Decline in FII holding (-0.12%).
Company Positive News
- 📊 Increase in DII holding (+0.30%).
- 📈 PAT growth from ₹98.4 Cr. to ₹151 Cr.
Industry
- 💹 Industry PE at 22.5, much lower than SHYAMMETL’s 47.7.
- ⚡ Steel demand supported by infrastructure and industrial growth.
- 🏦 Commodity price volatility impacting sector margins.
Conclusion
⚖️ SHYAMMETL is a fundamentally strong metals player with low leverage and strong profit growth. However, valuations are stretched, limiting near-term upside. Entry may be considered around ₹880–₹900 for long-term investors, but caution is advised due to cyclical risks and high valuation multiples.
For deeper insights, you could explore SHYAMMETL peer comparison or a technical chart analysis to complement this fundamental view.