This smallcap stock is trending up by 4% as board approves fresh capex
The company plans to spend Rs 990 crore for adding capacities.
Shyam Metalics and Energy Ltd, engaged in the business of iron and steel products manufacturing, has been trending on Dalal Street as it has rallied by over 4%. The share has been trading in the green territory today. The scrip opened at Rs 317.80 and made a day’s high of Rs 323.55. At 1:05 pm today, the stock is trading at Rs 320.70 on the BSE.
The board has approved capital expenditure of Rs 990 crore which has boosted the rally in the stock. It has two plants at Sambalpur and Jamuria where it would be adding relatively significant capacities along with the addition of a couple of lines at both locations. The proposed capacity expansion is expected to be completed by March to September 2023. The company expects to capitalize on business synergies and add facilities for continued cost leadership through this capex.
Talking about its recent quarterly results, in Q3FY22, revenue grew by 51.67% YoY to Rs 2577.82 crore from Rs 1699.57 crore in Q3FY21. On a sequential basis, the top-line was up by 3.35%. PBIDT (Ex OI) was reported at Rs 624.97 crore, up by 76.82% as compared to the year-ago period and the corresponding margin was reported at 24.24%, expanding by 344 basis points YoY. PAT was reported at Rs 422.6 crore, up by 95.27% from Rs 216.42 crore in the same quarter for the previous fiscal year. The PAT margin stood at 16.39% in Q3FY22 expanding from 12.73% in Q3FY21.
The Shyam Group of Industries is one of the front runners in the Iron & Steel sector in the Eastern Region and features amongst the largest manufacturers of Ferro Alloys in the country.
The stock has a 52-week high of Rs 461.15 and a 52-week low of Rs 288.85.
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