ICICI Securities research report on Shyam Metalics and Energy
Shyam Metalics and Energy’s (SMEL) operating performance in Nov’23 remained steady. Key points: 1) Stainless revenue added post consolidation of Mittal Corp; 2) metalics volume rose YoY as newly-commissioned capacities ramp up; 3) rolled products volume was stable MoM, but down YoY owing to delayed festive season; and 4) implied revenue reported 9.3% YoY growth aided by stainless steel. Going ahead, we expect SMEL’s performance to be aided by higher volume owing to demand uptick in infrastructure segment. Besides, aluminium foils and stainless steel (10% of overall revenue in Nov’23) are likely to diversify its earnings profile.
Outlook
We maintain BUY on SMEL with an unchanged TP of INR 690 on 6x FY25E EBITDA.
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