52-week high alert: This mid-cap company announces commissioning of production capacities at their manufacturing facility in Jamuria, West Bengal!

52-week high alert: This mid-cap company announces commissioning of production capacities at their manufacturing facility in Jamuria, West Bengal!

Kiran Shroff
/ Categories: Trending, Mindshare

The stock is up by 22 per cent in just 6 months and over 30 per cent in 1 year.

Shyam Metalics and Energy Limited (SMEL), a leading integrated metal-producing company based in Kolkata, announced the commissioning of production capacities at their manufacturing facility in Jamuria, West Bengal.

The production capacity has been commissioned at the respective location of the material wholly owned subsidiary i.e., Shyam SEL & Power Ltd and the necessary CTO from the authorities have been received. The commission of the project will focus on TMT and long products with an additional capacity of 1,00,000 TPA.

Earlier, the capacity of the captive power plant will increase by 90 MW, from 267 MW to 357 MW. The company sources 75 per cent of its power requirement from the captive plant. The incremental addition will lead to 80 per cent of power sourcing internally, which leads to significant cost savings. The company has also boosted its sponge iron production, commissioning an incremental capacity of 1,65,000 TPA.  

On Wednesday, shares of SMEL zoomed 4.15 per cent to make a new 52-week high of Rs 92.90 per share. At the closing bell, shares of the company were trading at Rs 379.90 per share, up 0.70 per cent. The stock is hitting back-to-back 52-week highs in the recent trading sessions. The shares of the company saw a spurt in volume by more than 2.26 times on BSE.

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The company has a market cap of over 9,500 crore and reported positive numbers in its Quarterly Results and annual results. As of March 2023, the shareholding pattern of the company indicates that the majority stake of 88.35 per cent is held by the company's promoters, while the remaining ownership is divided among DIIs (3.17 per cent), FIIs (0.65 per cent) and the general public (7.84 per cent).

The shares of the company have a PE of 11.50x whereas the industry PE is 33.60x. The stock is up by 22 per cent in just 6 months and over 30 per cent in 1 year. Investors should keep an eye on this mid-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.

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