Shyam Metalics shares hit new 52-week high on expansion at Jamuria unit
Shyam Metalics and Energy's share price hit a 52-week high after commissioning production facilities at its Jamuria manufacturing facility in West Bengal. The captive power plant's capacity will be raised by 90 MW to 357 MW from 267 MW, resulting in significant cost savings.
Stock market news: Shyam Metalics and Energy's share price hit a fresh 52-week high on Thursday and gained over 2% after the metal maker announced on Wednesday that it had commissioned production facilities at its Jamuria manufacturing facility in West Bengal. Shyam Metalics and Energy share price began trading at ₹348.30 apiece on BSE, the stock touched intraday high at ₹355.95 and low of ₹347.60 on Thursday's session.
In an exchange filing, the company stated that the captive power plant's capacity will be raised by 90 MW to 357 MW from 267 MW. The company additionally expanded its sponge iron production, commissioning an additional capacity of 1,65,000 TPA, resulting in an increased overall capacity of 2.7 MTPA.
The captive plant supplies around 75% of the company's power requirements. The incremental expansion will result in 80% of power sourcing being done internally, resulting in significant cost savings.
“We continue to deliver on our ambitious expansion plans. I am happy to announce that with current addition we have successfully completed the capacity additions we had outlined in our IPO plans. The addition to our captive power plant gives us a significant boost with reliable and low cost power, and we are in an even better position to supply sponge iron which continues to see improving demand,” said Brij Bhushan Agarwal, Vice Chairman & Managing Director.
On the technical front, as per trendlyne data, the stock price rose 23.9% and underperformed its sector by 19.3% in the past year.
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the stock has activily participated in the current midcap rally and is up more than 18% this month, it has hit a fresh 52 week high and continues to look promosing.
The recent move is backed with high volumes that augurs well for the bulls and in case of any dips it can be considered to buy with 335 - 340 as support, 380 is next resistance.
“The stock has recently seen rise in volumes along with the price upmove indicating buying interest. However, the momentum readings have reached overbought zone and hence, one should keep a buy on dip approach. The 20 DEMA support is placed around ₹330-325,” said Ruchit Jain, lead research analyst at 5paisa.
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