1. At a Glance – Steel Company with Expansion Fever
Shyam Metalics is trading at ₹779, down almost 19% in six months, with a market cap of ₹21,747 Cr — which is funny because the company itself is expanding like it already believes it’s a ₹50,000 Cr behemoth.
FY25 revenue stands at ₹17,447 Cr, PAT at ₹970 Cr, EBITDA margin at ~12%, and ROCE politely yawning at 12%.
Debt? Only ₹1,117 Cr.
Promoter holding? 74.6% with zero pledge.
Capex announced? ₹10,025 Cr.
This is not a stressed steel company.
This is a confident one — maybe too confident.
2. Introduction – Sponge Iron Se Nikle, Ab Sab Kuch Banana Hai
Shyam Metalics started as a sponge iron and pellet player. Sensible. Cash-generating. Cyclical but manageable.
Then management looked at the steel value chain and said:
“Why stop?”
So now we have:
- Finished steel
- Ferro alloys
- Stainless steel
- Aluminium foil
- Roofing sheets
- DI pipes
- Wagons
- Captive power
This is not diversification anymore.
This is steel FOMO.
The big question: Is this a masterplan… or an ego trip funded by internal accruals?
3. Business Model – WTF Do They Even Do?
Think of Shyam
Metalics as a vertically integrated steel thali.
Revenue Mix FY25:
- Finished Steel – 45%
- Intermediates – 29%
- Ferro Alloys – 13%
- Stainless Steel – 7%
- Aluminium Foil – 5%
Earlier, intermediates dominated. Now, management wants value-added, margin-stable products.
Sounds smart.
But remember — every new vertical resets execution risk to zero.
4. Financials Overview – Numbers Without Romance
Q3 FY26 (Dec 2025 – Quarterly Results LOCKED)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 4,421 | 3,756 | 4,467 | 17.7% | -1.0% |
| EBITDA (₹ Cr) | 487 | 456 | 539 | 6.8% | -9.6% |
| PAT (₹ Cr) | 198 | 197 | 260 | -0.2% | -23.8% |
| EPS (₹) | 7.07 | 7.08 | 9.38 | -0.1% | -24.6% |
Margins slipped. PAT stalled.
Classic steel quarter. Nothing is broken, nothing is exciting.
Annualised EPS (Q3 rule):
Average of Q1, Q2, Q3 EPS × 4 ≈ ₹36–38
5. Valuation Discussion – Numbers, Not Hope
Method 1: P/E
- Normalised EPS: ₹36–38
- Conservative P/E: 16–20
Implied range: ₹575 –
