Shyam Metalics and Energy

Shyam Metalics is a leading integrated metal producing company based in India with  focus on long steel products and ferro alloys. Shyam Metallics is amongst the largest producers of ferro alloys in terms of installed capacity in India. Shyam Metallics has the ability to sell intermediate and final products across the steel value chain. Shyam Metalics is one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India. Shyam Metallics is also one of the leading integrated steel and ferro alloys producers in the eastern region of India in terms of long steel products. The Company has recently Forayed into Aluminium Foils Segment as well.Shyam Metalics has a consistent track record of delivering operating profitability, since the commencement of our operations in Fiscal 2005, we have delivered a positive EBITDA in each of the Fiscals. 

Current Capacity and Expansions

Volumes

Realizations

With Inflation Being Sticky above the Global Central Banks band I expect more Fall in Realizations due to rising interest rates and fall in demand in Construction Segment.I expect Volumes to be Tepid for FY24E as well.  The Company is in an agressive Capex mode of nearly 2500 Crs.This Capex will take the Overall Net Block of the Company to nearly 5000 Crs. The Capex will be Completed by FY25E.

To meet SEBI’s norm, the promoters need to dilute their current holding of 88 per cent in Shyam Metalics by at least 13 percent.