Shyam Metalics & Energy Ltd – ATH Breached on Robust Q1 Numbers

📈Technical Analysis

The stock listed in 2021 and was in a downtrend until 2023. From ₹250, it rallied to reach ₹950 in September 2024, forming its all-time high. Since then, the ₹950 zone acted as resistance multiple times, during which a Cup & Handle pattern emerged.

This week, the stock decisively broke that resistance on the back of positive Q1 FY26 results. Trading around ₹978 now, it gained momentum.

Take position only once the stock crosses ₹1,000, targeting:

🎯₹1,050 (Target 1)

🎯₹1,100 (Target 2)

🎯₹1,150 (Target 3)

Keep your stop loss at ₹930. A breach below that invalidates the bullish pattern.

💰Q1 FY26 Financial Highlights (vs Q4 FY25 & Q1 FY25)

• Total Income: ₹4,419 Cr (↑ +6.8% QoQ vs ₹4,139 Cr; ↑ +22.4% YoY vs ₹3,612 Cr)
  
• Total Expenses: ₹3,839 Cr (↑ +5.6% QoQ vs ₹3,624 Cr; ↑ +22.9% YoY vs ₹3,124 Cr)
  
• Operating Profits (EBITDA): ₹580 Cr (↑ +12.5% QoQ vs ₹515 Cr; ↑ +18.8% YoY vs ₹488 Cr)
  
• Profit Before Tax: ₹389 Cr (↑ +31% QoQ vs ₹297 Cr; ↑ +4% YoY vs ₹374 Cr)
  
• Profit After Tax: ₹291 Cr (↑ +32% QoQ vs ₹220 Cr; ↑ +6% YoY vs ₹276 Cr)
  
• Diluted EPS: ₹10.47 (↑ QoQ vs ₹7.84; ↑ YoY vs ₹9.89)
  
  🧠Fundamentals & Dividend Insights
  
  Q1 PAT rose 33.6% QoQ to ₹292 Cr, led by improved margins and revenue growth (Revenue ₹4,419 Cr)
  
  EBITDA margin expanded to 13.1% (vs 12.4% QoQ), reflecting cost efficiencies
  
  Management approved fundraising up to ₹4,500 Cr via equity/debt/NCDs, indicating growth capital in pipeline
  
  Interim dividend announced of ₹1.80/share for FY26 — shareholders rewarded amid momentum
  
  Low debt (Debt/Equity ~0.07), strong ROCE (~12%), and high asset turnover reflect financial discipline
  
  ✅Summary
  
  Shyam Metalics has displayed a textbook breakout from a notable resistance zone, confirmed by strong Q1 fundamentals and margin expansion. Key inputs:
  
  💵 Revenue up 22% YoY; PAT up 33% QoQ
  
  ➕ Fresh strength above ₹950 resistance
  
  🎯 Clear upside targets: ₹1,050 → ₹1,100 → ₹1,150
  
  ⚠️ Strict stop-loss level: ₹930
  
  Disclaimer:lnkd.in/gJJDnvn2