Our 23th company in the Series of Best Stocks to Buy in India for Long term 2022 is Shyam Metalics and Energy Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Shyam Metalics & Energy is manufacturer of steel billets, Ferro alloys, sponge iron, iron pellets and TMT and structural products and pipes.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹7,587cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 4.40
Sector PE Ratio: 13.32
PE Ratio of this company is low than Sector’s PE. So it’s a Average PE than the peers of this company.
PB Ratio : 2.09
Sector PB Ratio : 2.66
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 2.22%
Sector Dividend Yield : 2.34%
Dividend of this company is Low than Sector’s dividend. So it’s Good PB than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Good.
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2022 , Company have 1,781.50 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: Shyam Metalics has more cash than its total debt.
Reducing Debt: Shyam Metalics debt to equity ratio has reduced from 37.2% to 9.3% over the past 5 years.
Debt Coverage: Shyam Metalics debt is well covered by operating cash flow (311.1%).
Interest Coverage: Shyam Metalics interest payments on its debt are well covered by EBIT (95x coverage).
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotors holding which is 88.35% in June 2021. FIIs invested in June 2022 with 0.81% and retail investor is 7.75%.
Investment Checklist for Shyam Metalics and Energy Ltd.
- The company is currently profitable
- Earnings are forecast to decline by an average of 4.1% per year for the next 3 years
- Unstable dividend track record
- Debt level is low and not considered a risk
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins decreased but not substantially
- They have sufficient analyst coverage
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹112B)
- Market cap is meaningful (₹77B)
- Shyam Metalics does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Hope you liked Our 23th company in the Series of Best stocks to buy in India for Long term 2022. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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