⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SHYAMMETL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | SHYAMMETL | Market Cap | 21,946 Cr. | Current Price | 786 ₹ | High / Low | 1,001 ₹ |
| Stock P/E | 43.8 | Book Value | 222 ₹ | Dividend Yield | 0.57 % | ROCE | 12.0 % |
| ROE | 8.48 % | Face Value | 10.0 ₹ | DMA 50 | 827 ₹ | DMA 200 | 848 ₹ |
| Chg in FII Hold | -0.44 % | Chg in DII Hold | 0.23 % | PAT Qtr | 98.4 Cr. | PAT Prev Qtr | 136 Cr. |
| RSI | 41.5 | MACD | -21.1 | Volume | 2,25,630 | Avg Vol 1Wk | 2,89,545 |
| Low price | 737 ₹ | High price | 1,001 ₹ | PEG Ratio | -2.93 | Debt to equity | 0.05 |
| 52w Index | 18.5 % | Qtr Profit Var | -17.2 % | EPS | 18.0 ₹ | Industry PE | 18.1 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT declined from ₹136 Cr. to ₹98.4 Cr. (-17.2%).
- Margins: ROE at 8.48% and ROCE at 12.0% → moderate efficiency.
- Debt: Debt-to-equity ratio of 0.05 → very low leverage, strong balance sheet.
- Cash Flow: Stable, supported by low debt but pressured by declining profits.
- Return Metrics: EPS at ₹18.0, modest earnings power.
💹 Valuation Indicators
- P/E Ratio: 43.8 vs Industry PE of 18.1 → highly overvalued.
- P/B Ratio: Price ₹786 / Book Value ₹222 ≈ 3.54.
- PEG Ratio: -2.93 → negative, reflecting weak growth outlook.
- Intrinsic Value: Current valuation stretched, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in steel and metals manufacturing.
- Competitive advantage lies in integrated operations and cost efficiency.
- Low debt enhances financial stability.
- Challenges include cyclical demand, margin pressures, and profit volatility.
📈 Entry Zone Recommendation
- Technicals: RSI at 41.5 (near oversold), MACD negative, price below 50DMA (827) and 200DMA (848).
- Entry Zone: Attractive accumulation near ₹740–770 for long-term investors.
- Holding Guidance: Suitable for patient investors; long-term holding depends on earnings recovery and demand stability.
✅ Positive
- Low debt-to-equity ratio (0.05).
- DII holdings increased (+0.23%).
- Strong industry presence with integrated operations.
⚠️ Limitation
- Quarterly PAT declined (-17.2%).
- Weak ROE (8.48%) and ROCE (12.0%).
- High P/E (43.8) compared to industry average (18.1).
📉 Company Negative News
- PAT dropped from ₹136 Cr. to ₹98.4 Cr.
- FII holdings decreased (-0.44%).
- Stock corrected from ₹1,001 to ₹786.
📈 Company Positive News
- DII confidence increased (+0.23%).
- Debt-free balance sheet provides resilience.
- RSI near oversold may attract value investors.
🌐 Industry
- Steel and metals industry is cyclical but critical for infrastructure growth.
- Industry PE at 18.1 indicates sector trades at lower valuations compared to SHYAMMETL.
- Global demand recovery supports long-term opportunities.
🔎 Conclusion
- SHYAMMETL shows financial stability with low debt but suffers from weak profitability and high valuation.
- Valuations are stretched, limiting near-term upside.
- Best considered for long-term investors with entry near ₹740–770; holding depends on earnings recovery and demand growth.