Shyam Metalics and Energy Limited

Basic Materials — Steel · NSE

₹1,200.10+₹43.10 (+3.73%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Shyam Metalics and Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shyam Metalics and Energy Limited, a metal-producing company, produces and sells long steel products, ferro alloys, and aluminium and stainless steel in India and internationally.

IndustrySteel

SectorBasic Materials

Employees10,264

Annual revenue₹18,487 Cr

How does it make money?

Turns over ₹18,487 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 10,264 employees supports ₹1.80 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.80 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.8%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 21.1% and earnings to grow about 26.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.1%

Est. earnings growth+26.4%

Analysts9

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +47% while net margin moved -14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+47%

Margin effect-14%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 8.13x is high — earnings must service borrowings before shareholders see anything
✗ Current ratio of 1.00 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✓ Operating profit covers interest 12.5x over

Quality vs. Valuation

Company Quality

45/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

36/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

29.9x

3Y Median

21.9x

40 monthly readings · mean 22.8x · range 13.3x–31.7x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 36% above its 3y median of 21.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 65% above the peer median of 18.2x.

vs. its own history

Expensive

21.9x median over 40 months · +36%

vs. sector peers

Expensive

18.2x median of 4 peers · +65%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.2x

PEG

3.80

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 14% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 8.13x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Inventory building faster than salesFinancial
Inventory up 103% against revenue up 47% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 1.00 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 8.13x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 36% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.6% CAGR
Latest reported year was 23.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹614 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 12.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹33,409 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

29.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹40.08

Profitable

Profitable on a per-share basis

ROE

9.3%

Moderate

Moderate capital efficiency

ROCE

12.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

8.13x

High

High leverage

Revenue Growth (YoY)

23.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.37%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹614 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

17.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.3%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

1.00

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

95%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1089.4 / 1057.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

71.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12,609 Cr	₹13,141 Cr	₹15,063 Cr	₹18,487 Cr	+13.6%
EBITDA	₹1,527 Cr	₹1,605 Cr	₹1,948 Cr	₹2,412 Cr	+16.5%
EBITDA Margin	12.1%	12.2%	12.9%	13.0%	—
PAT (Net Profit)	₹853 Cr	₹1,035 Cr	₹908 Cr	₹1,070 Cr	+7.9%
EPS	₹33.07	₹39.68	₹32.53	₹38.33	+5.0%
ROE	11.7%	10.7%	8.6%	9.3%	—
ROCE	13.6%	9.5%	11.3%	12.4%	—
Total Debt	₹1,172 Cr	₹597 Cr	₹789 Cr	₹1,005 Cr	-5.0%
Free Cash Flow	-₹386 Cr	-₹93 Cr	-₹435 Cr	-₹614 Cr	—

🟢 Revenue has grown at 13.6% a year over 3 years.

🟢 EBITDA has grown at 16.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 13.0% over 3 years.

🟢 PAT (Net Profit) has grown at 7.9% a year over 3 years.

🟢 EPS has grown at 5.0% a year over 3 years.

🔴 ROE has fallen from 11.7% to 9.3% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 13.6% to 12.4% over 3 years (-1.2 pts).

🟢 Total Debt has shrunk at 5.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20,061 Cr

Total Liabilities

₹7,704 Cr

Cash & Equivalents

₹97 Cr

Operating Cash Flow

₹2,024 Cr

Capex

-₹2,637 Cr

Shareholding (proxy)

Institutional Holding

14.7%

Insider Holding

76.0%

Corporate Actions

Dividend Rate

₹4.5

Ex-Dividend Date

07 Aug 2026

Analyst Consensus

Recommendations

8 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,171.67

-2.4% vs CMP

Target Range

₹790 – ₹1,550

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive1 mixed4 general

Shyam Metalics Secures Mining Rights for Phutamura Block

HDFC Sky, 13 Oct

Shyam Metalics and Energy (NSEI:SHYAMMETL) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Five Stocks To Buy Today: NBCC, Zomato, HPCL, L&T And Shyam Metalics

NDTV Profit, 17 Oct

Shyam Metalics And Energy - Concurrent Gainers: 15 stocks gain for 5 days in a row

The Economic Times, 17 Oct

Shyam Metalics & Energy Ltd Hits All-Time High of Rs 1165.95 as Momentum Builds Across Timeframes

MarketsMojo, 16 Oct

Shyam Metalics Q1 results: Net profit rises 18%; board approves fundraising plans, declares dividend for FY27

Upstox, 20 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality · Growth · Risk

WeakFinancial Health · Profitability · Valuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑