NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Shyam Metalics and Energy Ltd.’s December 2023 volume stayed robust on finished steel front with revenue rate picking up. Key points:
Rebar shipments at 130kt rose to their highest-ever level for any month;
pellet sales declined YoY and month-on-month, possibly due to lower spreads;
Mittal Corp stainless steel plants continue to ramp up; and
implied revenue rate is in excess of Rs 12.2 billion per month now.
Going ahead, we believe revenue may be boosted by higher rebar sales (likely to stabilise at 1.8-2 million tonnes per annum rate), ramp-up of stainless steel operations at Mittal Corp and (recently commissioned) sponge iron capacity.
That said, we trim our FY24E/FY25E Ebitda by 20%/18%, taking cognisance of adverse pricecost spread.
Rolling over to FY26E earnings, we raise our target price to Rs 780 (earlier Rs 690). Maintain 'Buy'.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR