Shyam Metalics (SHYAMMETL)

FairStock Score: 65/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Shyam Metalics as a Graham-style bargain hunter and a Buffett-style business appraiser. It is an iron and steel products maker, so I start with cyclicality. The balance sheet is a genuine positive: debt/equity is only 0.08, Altman Z-Score is 3.01, and Piotroski F-Score is 7/9. Promoters own 74.59%, so their interests are aligned. Operations are growing: five-year revenue CAGR is 28.17%, sales growth is 23.50%, profit growth is 20.70%, and the latest quarter had sales of ₹4,421 Cr and net profit of ₹198 Cr. That is respectable. But business quality is not exceptional. ROE is 9.19% and ROCE is 12.05%, hardly the hallmark of a wide-moat compounder. In commodities, scale and cost position matter, yet these returns suggest limited pricing power. Free cash flow is only ₹60 Cr, which is thin relative to the stated profit run-rate. Dividend yield is just 0.54%. Valuation is my biggest stumbling block. At ₹999.60, market cap is ₹27,822 Cr, P/E is 24.69, P/B is 2.47, and book value is ₹404.45. Graham Number is ₹557.07, giving a margin of safety of -54.43%; DCF intrinsic value is ₹19.65; EV/EBITDA is 32.22. Those are not comforting numbers for a steel cyclical. The FairStock Score of 65/100 says steady, not cheap. So I see a financially sound, growing cyclical, but not a Graham bargain. I would monitor cash flow, returns, and the steel cycle before paying this price. A margin of safety would require either a much lower price or a clear improvement in ROCE and free cash flow.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer