Shyam Metalics and Energy Limited — Credit Ratings, 13-11-2024: Credit Rating

Shyam Metalics and Energy Limited has reported consolidated revenue of ₹1,321 crore, reflecting a year-over-year growth, driven by increased steel-making capacities and a focus on value-added products. The company reported a net profit of ₹1,029 crore, resulting in an Earnings Per Share (EPS) of ₹10.29, up from ₹848 crore and EPS of ₹8.48 in the previous year.

Operational costs exhibited a modest increase of around 5%, influenced by ongoing capacity expansion and rising raw material costs. The balance sheet remains robust with a low adjusted gearing of 0.06 times and strong liquidity indicated by cash and equivalents of ₹2,200 crore.

The strategic focus on expanding the share of finished products and diversification into sectors like aluminum is positive for future growth. The current metrics suggest a favorable risk profile, prompting a buy insight from an investor's perspective.