SHYAMMETL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.0
| Stock Code | SHYAMMETL | Market Cap | 24,389 Cr. | Current Price | 874 ₹ | High / Low | 1,001 ₹ |
| Stock P/E | 48.7 | Book Value | 222 ₹ | Dividend Yield | 0.52 % | ROCE | 12.0 % |
| ROE | 8.48 % | Face Value | 10.0 ₹ | DMA 50 | 831 ₹ | DMA 200 | 843 ₹ |
| Chg in FII Hold | -0.12 % | Chg in DII Hold | 0.30 % | PAT Qtr | 98.4 Cr. | PAT Prev Qtr | 136 Cr. |
| RSI | 59.6 | MACD | 15.7 | Volume | 7,01,751 | Avg Vol 1Wk | 12,49,279 |
| Low price | 746 ₹ | High price | 1,001 ₹ | PEG Ratio | -3.25 | Debt to equity | 0.05 |
| 52w Index | 50.2 % | Qtr Profit Var | -17.2 % | EPS | 18.0 ₹ | Industry PE | 22.1 |
📊 SHYAMMETL reflects moderate fundamentals with low debt-to-equity (0.05), ensuring financial stability. However, efficiency metrics are weak — ROE (8.48%) and ROCE (12.0%) remain below ideal compounding levels. Valuation is expensive with P/E (48.7) compared to industry average (22.1), and PEG ratio (-3.25) highlights poor growth relative to valuation. EPS of ₹18.0 provides earnings visibility, but profitability has declined (PAT ₹98.4 Cr. vs ₹136 Cr. QoQ). Current price ₹874 is above DMA 50 (₹831) and DMA 200 (₹843), suggesting near-term momentum. Entry zone is attractive near ₹820–850 for accumulation.
💡 Long-term investors may hold with a 2–3 year horizon, focusing on profitability recovery. Exit strategy: partial profit booking near ₹950–980 or full exit if ROE remains below 10% and earnings continue to decline.
Positive
- 📈 Debt-to-equity ratio of 0.05 indicates very low leverage risk.
- 💰 EPS of ₹18.0 supports earnings visibility.
- 📊 DII holding increased (+0.30%), showing domestic institutional support.
Limitation
- ⚠️ ROCE at 12% and ROE at 8.48% are weak for long-term growth.
- 📉 Dividend yield of 0.52% offers limited passive income.
- 📊 High P/E of 48.7 compared to industry average of 22.1 suggests overvaluation.
Company Negative News
- 📉 PAT declined from ₹136 Cr. to ₹98.4 Cr. QoQ, showing earnings pressure.
- 📊 FII holding decreased (-0.12%), reflecting reduced foreign investor confidence.
Company Positive News
- 📈 Technicals: RSI at 59.6 and MACD positive (15.7), indicating near-term momentum.
- 📊 Strong trading volumes show active market participation.
Industry
- 🏭 Industry PE at 22.1 is much lower than SHYAMMETL’s 48.7, suggesting relative overvaluation.
- 📉 Metals sector is cyclical, tied to commodity prices and global demand.
Conclusion
⚖️ SHYAMMETL is a moderately strong candidate for medium-term investment with low debt and decent EPS, but weak ROE/ROCE and stretched valuations limit long-term potential. Ideal entry is near ₹820–850. Long-term investors should monitor profitability closely. Exit near ₹950–980 or on further deterioration of earnings.
This structured HTML report captures SHYAMMETL’s fundamentals, valuation risks, and sector context with clear entry/exit guidance. Would you like me to extend this into a peer benchmarking overlay against JSW Steel, Tata Steel, and NMDC to highlight stronger alternatives in the metals sector?