Metal stock Shyam Metalics hits a record high after this business update. Details here
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Shyam Metalics shares rose over 2% to reach a record high following the announcement of its subsidiary's new aluminium foil facility in Odisha, which has an operational capacity of 18,000 TPA. The company expects this expansion to significantly boost operating margins and revenue growth, with projections of doubling to 2.5 times its topline. Year-to-date, the stock has gained over 23%, reflecting strong market performance.
Metal stock Shyam Metalics rose more than 2% in intraday deals on Thursday, 16 July, to hit a record high, buoyed by the company's business update. Shyam Metalics and Energy share price opened at ₹1,028.05 against its previous close of ₹1,033.90 and climbed 2.4% to an all-time high of ₹1,059. The stock pared gains later and traded 0.63% up at ₹1,040.40 around 2:40 PM.
In an exchange filing during market hours on 16 July, Shyam Metalics said its step-down subsidiary, SMEL Steel Structural Pvt. Ltd., started commercial production at its aluminium foil facility in Sambalpur, Odisha.
The facility has an installed operational capacity of 18,000 tonnes per annum (TPA) and is equipped to manufacture premium-grade foils in the thickness range of 6 to 40 microns, as per the exchange filing.
SMEL Steel, as per the exchange filing, also confirmed that its aluminium flat rolled products (FRP) facility is in the final readiness phase and is on track for commercial launch by September 2026, further strengthening its presence in the value-added aluminium products segment.
The FRP section will have an installed capacity of 60,000 TPA and would span a thickness range of 0.3 to 4.0 mm, said the company.
The commissioning of aluminium foil and the FRP facility plans is anticipated to enhance SMEL’s operating margins by approximately 40-50% on the back of optimised product mix and higher product realisations. It is also projected to drive robust revenue growth,
expanding the company's topline by 2 times to 2.5 times through enhanced market reach and distribution across domestic and international markets, said the company.
As per the BSE data, Shyam Metalics shares have gained over 23% year-to-date, while in a shorter timeframe of three months, it has gained nearly 21%. On a monthly scale, the stock is up over 9% so far in July.
The stock hit a 52-week low of ₹745.65 on 16 March this year.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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