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52-week high alert: This mid-cap company commissions enhanced captive power & sponge iron capacity!
Kiran Shroff
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52-week high alert: This mid-cap company commissions enhanced captive power & sponge iron capacity!

The stock is up by 22 per cent in just 1 month and over 40 per cent in 3 months.

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 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, leading to an enhanced total capacity of 2.7 MTPA.

Mr Brij Bhushan Agarwal, Vice Chairman & Managing Director said, “We continue to deliver on our ambitious expansion plans. I am happy to announce that with the 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.”

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On Wednesday, shares of SMEL zoomed per cent to make a new 52-week high of Rs 373 per share. At the closing bell, shares of the company were trading at Rs 363.70 per share, down 0.56 per cent. The stock is hitting back-to-back 52-week highs in the recent trading sessions.

The shares of the company have a PE of 11x whereas the industry PE is 33.60x. The stock is up by 22 per cent in just 1 month and over 40 per cent in 3 months. Investors should keep an eye on this mid-cap stock.

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