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SHYAMMETL - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 02 Feb 26, 09:58 am

Technical Rating: 3.9

Stock Code SHYAMMETL Market Cap 23,607 Cr. Current Price 848 ₹ High / Low 1,001 ₹
Stock P/E 47.1 Book Value 222 ₹ Dividend Yield 0.53 % ROCE 12.0 %
ROE 8.48 % Face Value 10.0 ₹ DMA 50 831 ₹ DMA 200 852 ₹
Chg in FII Hold -0.44 % Chg in DII Hold 0.23 % PAT Qtr 98.4 Cr. PAT Prev Qtr 136 Cr.
RSI 56.3 MACD 4.72 Volume 83,620 Avg Vol 1Wk 3,71,153
Low price 662 ₹ High price 1,001 ₹ PEG Ratio -3.15 Debt to equity 0.05
52w Index 54.9 % Qtr Profit Var -17.2 % EPS 18.0 ₹ Industry PE 18.7

📊 Technical Analysis

  • Chart Patterns: Stock is trading near 50 DMA (831 ₹) and slightly below 200 DMA (852 ₹), showing consolidation with mild bullish bias.
  • Moving Averages: Current price (848 ₹) above 50 DMA but marginally below 200 DMA → neutral to bullish setup.
  • RSI: 56.3 → mid-range, suggesting healthy momentum without being overbought.
  • MACD: 4.72 → positive crossover, confirming short-term bullish signals.
  • Bollinger Bands: Price near mid-band, indicating consolidation with potential upward breakout.
  • Volume Trends: Current volume (83,620) significantly below 1-week average (3.71 lakh), showing weak participation despite price stability.

📈 Momentum & Signals

  • Short-term Momentum: Neutral to bullish, supported by MACD and price above 50 DMA.
  • Entry Zone: 835–850 ₹ (near 50 DMA support).
  • Exit Zone: 870–890 ₹ (near resistance and 200 DMA breakout zone).
  • Trend Status: Consolidating with bullish tilt; reversal possible if price sustains above 852 ₹.

✅ Positive

  • EPS of 18.0 ₹ reflects stable earnings base.
  • Low debt-to-equity ratio of 0.05 indicates strong financial stability.
  • DII holdings increased by 0.23%, showing domestic institutional support.
  • 52-week index performance at 54.9% highlights resilience compared to broader market.

⚠️ Limitation

  • High P/E of 47.1 compared to industry PE of 18.7.
  • ROE (8.48%) and ROCE (12.0%) are modest, showing average capital efficiency.
  • PEG ratio of -3.15 suggests poor growth-adjusted valuation.

📉 Company Negative News

  • PAT declined from 136 Cr. to 98.4 Cr. sequentially.
  • Quarterly profit variation shows decline (-17.2%).
  • FII holdings decreased by -0.44%, showing reduced foreign investor confidence.

📈 Company Positive News

  • Strong 52-week performance (+54.9%).
  • DII inflows indicate domestic confidence.
  • Low leverage provides financial flexibility.

🏭 Industry

  • Industry PE at 18.7, much lower than SHYAMMETL’s 47.1, suggesting sector peers may be more attractively valued.
  • Steel and metals sector remains cyclical but supported by infrastructure demand.

🔎 Conclusion

  • SHYAMMETL is consolidating near support levels with bullish signals from MACD and price above 50 DMA.
  • Short-term traders may consider entry around 835–850 ₹ with exit near 870–890 ₹.
  • Long-term investors should be cautious due to high valuation and declining profitability despite strong sector demand and low debt.

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