KR Choksey has come out with its report on Shyam Metalics and Energy. The research firm has recommended to ”Subscribe” the ipo in its research report as on June 11, 2021.
June 14, 2021 / 11:22 AM IST
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KR Choksey IPO report on Shyam Metalics and Energy
Shyam Metalics And Energy Limited (erstwhile Shyam DRI Power Limited) is an integrated metal company based out of Kolkata, West Bengal. It produces long steel (finished steel) and ferro alloys (raw material for finished steel), which include products such as pellets, TMT bars, structured products, wire rods and pipes, since 2005. The company is promoted by Mahabir Prasad Agarwal, Brij Bhushan Agarwal, Sanjay Kumar Agarwal, Shubham Capital Private Limited, Subham Buildwell Private Limited, Narantak Dealcomm Limited, Kalpataru Housefin & Trading Private Limited, Dorite Tracton Private Limited, and Toplight Mercantiles Private Limited. The company owns and operates 3 manufacturing plants at Sambalpur in Odisha, and Jamuria and Mangalpur in West Bengal with an aggregate installed capacity to produce 5.71 MTPA of metal. The company also has a captive power plant with an aggregate capacity to produce 227 MW of power. The company exports to Nepal, Bhutan, Bangladesh, China, Japan and Dubai. The company generated 11% of revenue from exports in 9MFY21.
Valuation and Outlook
Also, it has been in the process of introducing additional streams of revenue such as aluminum foil rolling mill and ductile iron pipes, thereby, it has been forward integrating incrementally, as well. We believe the company can benefit from secular positive trend for recovery in demand for iron and steel sector post lessening of severity of pandemic. Hence, we recommend “SUBSCRIBE” to the IPO.
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